INDIA’S FY14 BUDGET SEEN AS CREDIBLE AND PRAGMATIC

NEW DELHI - India's new budget for FY14 (year ending March 2014), presented today, delivers on three counts, according to an analysis by BBVA Bank: 1) it delivered a credible fiscal consolidation path; 2) it focussed on the quality of deficit reduction; and 3) it balanced austerity with populism without undermining economic growth. The Government said the FY13 fiscal deficit was within the targeted 5.3% of GDP (at 5.2%), with a promise to reduce the deficit to 4.8% of GDP in FY14 and to 3.0% by FY17.