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India Budget-What to expect-fiscal measures

NEW DELHI: Following is a list of fiscal measures that analysts expect Indian Finance Minister Yashwant Sinha to present in the 2000/2001 (April-March) federal budget due to be presented to parliament on February 29.

Introduction of legislation which will set a cap on government borrowings and discipline its spending. Introduction of a long-term fiscal policy setting out the government's fiscal deficit targets over a timeframe.

The policy is also expected to provide direction to state government finances. Control on expenditure. Government is expected to take steps to manage its expenditure more efficiently. Downsizing of government to reduce spending. Greater push to privatisation and divestment of government stakes in state-owned firms. Simplification of indirect taxation structure.

Withdrawal of several exemptions in both direct and indirect taxes. Streamlining and simplifying tax administration to ensure greater compliance and increased collections. Reducing direct and indirect subsidies.

The federal government is also expected to caution and advise state governments about their fiscal deficits.-Reuters