The Finance Minister said last week that fiscal targets were on track in his first Fiscal Position Report.
The Government said that privatisation proceeds were expected to be higher than the estimated Rs.
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13.5 bn. rn
rnAn upbeat finance minister told the media a few days ago that the governments fiscal program was on track despite some external shocks.rn
rnldblquote The first four month report is very much encouraging. Over all the economy has grown 5.
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3% in the first four months. Perhaps we would have fared better if not for the Iraq war, which put some constrains on the Treasury, dblquote Finance Minister K N Choksy said presenting the report.
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rn
rnCollections from VAT were however below expectations with an expanding list of exempt items and items in the lower tax band.rn
rnldblquote This was mainly due to the fact that in order to keep down the Cost of Living, the government exempted many consumer items from VAT as zero rated for VAT. Several items of import upon which earlier there was an