Union Budget 2013-2014 - The challenges facing the Minister of Finance

Minister of Finance Sri Chidambaram is facing a tough task in preparing the union budget 2013. On the one hand is the Lok sabha elections of 2014 that calls for popular measures and increased spending from the government. While on the other hand is the challenging state of the economy that calls for tough action including cut backs on government spending.

The main challenges the Minister of Finance will be facing this year will be

• An economy that is struggling with inflation and showing sighs of weakness.
• A record fiscal and current account deficit.
• Looming cloud of recessions in Europe and other major economies around the world.
• Threat of credit ratings getting downgraded.
• And the election to Loksabha in 2014.