Acuity Stockbrokers’ analysis of Budget 2012

Widely hailed for its pro-growth stance, Budget 2012 is most progressive for its position of fiscal consolidation.

The fact that the budget deficit has been brought down to 6.2% of GDP is laudable, and is in line with the country’s medium-term growth targets. Moreover, the Government’s ability to tame its expenditure despite its investment drive is creditable and bodes well for 2012.

Total estimated revenue (excluding grants) for 2012 is Rs. 1,109 b, up 19.8% from total revenue in 2011 (18.7% in the comparable period last year). Revenue from taxes is estimated to rise 20.9% from 2011, relative to 19.8% the previous year.