On the eve of the Budget presentation, economists on Thursday said the they expect the government to roll back some of the stimulus measures, as the economic growth is on rebound with the Economic Survey projecting the GDP to expand by up to 8.75 per cent in FY'11.
"The growth range is narrow, portraying confidence and optimism in economy. . . I think some of the stimulus measures could be withdrawn," Crisil principal economist D K Joshi said.
According to Axis Bank Economist Saugata Bhattacharya, the growth estimate for the next fiscal is feasible if there is improvement in farm output and industrial production continues to do well.
However, to contain the rising fiscal deficit, the government can withdraw some of the stimulus measures.
"I expect partial roll back of stimulus measures as the government has to reduce fiscal deficit," he added.
HDFC Bank chief economist Abheek Barua said the growth estimate is likely to be achieved.
He further said, some of the measures like raising excise duties and curtailing expenditure can be taken in the Budget.
In order to help the industry tide over the impact of the global financial crisis, the government came up with three stimulus packages cutting excise duty by six per cent, service tax by two per cent, besides stepping up plan expenditure sacrificing Rs 1.86 lakh crore (Rs 1.86 trillion) in revenue.
