Union Budget should focus on raising non-tax revenue: CLSA
Sharmila Whelan, Senior Economist at CLSA in an exclusive interview with CNBC-TV18 said she expected the upcoming union budget to focus on raising non-tax revenue and give a timeline for PSU privatisation. The budget will be presented on Monday, July 6. She further said that the government may take steps to bring expenditure in control. “India is on track for investment-led upturn next year”
Whelan added that the budget deficit was likely to fall to 7.9% in FY10 and 4.8% in FY11.
Commenting on CLSA’s GDP growth forecast Whelan said that she has increased India’s FY10 GDP forecast to 6.3% from 4.6% and upped the FY11 GDP forecast to 7.3% from 6.3%. On the US job data that was released, Whelan said that unemployment would peak at 11% in the second quarter next year. Further on the US economy, she said that it would contract by 3.5% this year and 0.5% in the next year. “US consumer will cut spending till end of 2010.”