Emerging market countries often use reserves to fend off speculative attacks against its currency, and to provide a cushion against external debt service. The FinMin said that Indias target for this years fiscal deficit was still 4.8%. It is a red line and it will not be breached, he said on a day that economic data out of the country showed the government had run up a fiscal deficit of nearly half the budgeted amount in the first quarter. The fiscal deficit for April-June quarter was 48.4% of the budgeted amount compared with 37.1% in the same period last year, the ET reported Thursday. Chidambaram had unveiled a new fiscal consolidation road map soon after taking over as finance minister last year and managed to contain fiscal deficit at 4.9% of GDP by effecting aggressive expenditure cuts, joining countries around the world trying to streamline government.
Finance moots 49% multi-brand retail FDI by automatic route
It was also not part of the suggestions put forward by the Arvind Mayaram committee. Sources, however, said the panel headed by Economic Affairs Secretary Mayaram had recommended that the FDI limit be raised to 49 per cent in almost all sectors through the automatic route, with 74 per cent FDI in multi-brand retail trading by the government approval route. The finance minstrys proposal could get support from the Planning Commission, an official said. The planning commission is yet to submit its response to the DIPP proposal.
Market Chatter-Corporate finance press digest
insurer American International Group Inc is still in talks about selling its aircraft leasing unit to a Chinese consortium after missing a July 31 deadline to close the $4.8 billion deal, sources said. * Austrian packaging group Constantia Flexibles has hired banks for an initial public offering that could take place this year, sources familiar with the situation said. * Terra Firma Capital Partners, the buyout group run by dealmaker Guy Hands, is close to agreeing a deal to sell its Northern Irish gas distribution company Phoenix Energy Holdings Group to Hastings Funds Management, Bloomberg reported. * ICU Medical Inc (ICUI), the California-based maker of intravenous medical equipment, is in exclusive talks to sell itself to Chicago private-equity firm GTCR LLC, said people familiar with the matter, Bloomberg reported. ()
WhiteHorse Finance, Inc. to Report Second Quarter 2013 Financial Results
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