PLEASE NOTE: EDIT CONTAINS CONVERTED 4:3 MATERIAL<br/> <br />India's finance minister arrives at parliament to unveil his new federal budget.<br/> <br />It's no easy job.<br/> <br />Pranab Mukherjee is under huge pressure to cut the nation's fiscal deficit that's likely finish the year well over its target of 4.6 per cent of GDP.<br/> <br />Inflation is also high<br/> <br />But Mukherjee says growth in the coming year is expected to slow.<br/> <br />SOUNDBITE: PRANAB MUKHERJEE, INDIA'S FINANCE MINISTER, SAYING (English):<br/> <br />"Taking a bird's-eye view of the entire economy, keeping in mind the difficult global environment, I expect India's GDP in 2012-13 to be 7.6 per cent, plus-minus 0.25 per cent."<br/> <br />The government's move to raise rail fares for the first time in eight years on Wednesday showed how tough things are going to be.<br/> <br />The measure sparked a backlash from one of its key coalition allies.<br/> <br />That's damaging its ability to make politically tough decisions like raising diesel prices to help ease the fiscal deficit.<br/> <br />India has a huge subsidy bill, pushed up to about 2. 5 per cent of GDP by rising fuel prices.<br/> <br />Mukherjee's told parliament in his budget speech the bill should be slashed to less than 2 per cent in the coming year.<br/> <br />That, he says, will need speedier introduction of economic reforms.<br/> <br />Prime Minister Manmohan Singh's government is already unpopular with voters, who showed their displeasure in the recent state elections.<br/> <br />More than a year of corruption scandals resulting in policy gridlock had added to the crisis.<br/> <br />But this year's budget is seen as a last chance to rein in the nation's huge fiscal deficit.<br/> <br />With federal elections due in 2014 the budget a year from now is likely to be laden with voter-pleasing populist spending measures.<br/> <br />Paul Chapman, Reuters
