Govt expenditure a worry but waiver of coal duty a positive: HSBC

by FP Staff  Mar 17, 2012 13:04 IST

#Budget 2012   #BudgetReax   #Deficit   #HSBC   #Naina Lal Kidwai  

Industry experts have echoed that the Union budget, though balanced, does not appear to be simulating growth while raising serious concerns over reducing  the fiscal deficit.

In an interview with CNBC-TV 18, Naina Lal Kidwai, country head of HSBC India, said the main worrying factor in this Budget is government expenditure. " It is where government fails typically, she said.

HSBC India head Naina Lal Kidwai gives her expert view on Budget 2012

She explained that government expenditure is where things go out of control as money is often spent on the wrong things and does not reach where it should. At the same time she also lauded the finance minister for presenting a realistic budget and his attempt at consolidating the fiscal deficit by raising taxes.

She also said that the power sector is likely to  gain from the waiver of duty on coal.  "Waiver for importing coal bill helped the power sector because one of the issues for power has been whole supply and the price of that coal when it is imported is pretty high so I think those are some of the positive there. Equity markets, capital markets infrastructure are the positives as against the negative on service tax increase and excise increase," said Kidwai.

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