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Friday, March 2, 2012

Union Budget 2012: Need to look at borrowing figures closely, says Ex-Fin Secy


When Finance Minister Pranab Mukherjee presents the Union Budget 2012 on March 16, experts will be keenly hearing his comments on fiscal deficit. India's fiscal deficit is a cause for worry now. It is expected to exceed the targeted 4.6% of GDP.
Former finance secretary S Narayan says, fiscal deficit in percentage terms will be optically low due to inflation. "Projected fiscal deficit for the next year is unlikely to be below 5%," he adds.
According to him, one needs to look at borrowing figures closely in the Budget. 
Narayan says, Oil and Natural Gas Corp 's (ONGC) auction was mismanaged.  ONGC share auction was affected by a system glitch due to large last minute orders.
He further says, the auction needed better co-ordination. "The auction was mispriced and didn't factor in the market condition,"

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