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Union Budget 2011: Time for deliverance INDIA'S INDUSTRIAL sector will also have hopes pinned on the Finance Minister to push pending reforms in the financial and infrastructural sector.The general budget is one of the greatest democratic instruments of growth.Small and Medium Enterprises (SMEs) are looking forward to key announcements to address their stimulus concerns in their respective sectors. Small and Medium Enterprises being the backbone of Indian economy, their contribution accounts for 40 per cent of the total exports and 45 per cent of the manufacturing output of the country.This year, the fiscal deficit should be lower than its estimate 4.7 per cent vs the budgeted 5.5 per cent. Due to large welfare schemes meeting, FY12 deficit targets will be extremely challenging. Rollback of fiscal stimulus is expected to continue in Union Budget 2011-12, but FY12 deficit of 4. 7 per cent is unlikely to be met. From FY12 onwards, fiscal consolidation will be much more challenging.Offsetting the higher receipts, the government budget expenditures are expected to reach 18 per cent year on year (YoY) from that of 9 per cent. Growth of expenditure this year has been...more
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