Govt Will Try to Restrict Fiscal Deficit to 5.3 Perecent: FM
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Govt Will Try to Restrict Fiscal Deficit to 5.3 Perecent: FM

Wednesday, 31 October 2012, 12:11 Hrs   |    1 Comments
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Bangalore: The government will endeavour to maximise revenue collection and contain expenditure to restrict fiscal deficit to 5.3 percent of the Gross Domestic Product (GDP) in the current financial year, Finance Minister P Chidambaram has said.

"Best efforts would be made to contain fiscal deficit at 5.3 percent, during the current financial year even though the Kelkar Committee has stated that as per the current economic trends, it could be 6.1 percent," he said yesterday while addressing the Consultative Committee attached to his Ministry on 'Economic Impact of Internal and External Debt'.

According to the Minister, "the target of 5.3 percent is challenging one, yet it is doable".

Although the government in the Budget had proposed to bring down fiscal deficit in 2012-13 to 5.1 percent from 5.8 percent in the previous financial year, it is expected to shoot up on account of various global and domestic factors.

The strategy to achieve the target would be to maximise revenue collections and control expenditure, Chidambaram said, while seeking support of the political parties to deal with economic and financial problems facing the country.

"No country can live beyond its means", he said, adding that it was imperative to ensure that country's debt remains sustainable and within limits.

The countries which have accumulated un-sustainable levels of debt are facing economic and financial problems, he added.

The Minister further said that serious efforts would also be made to bridge the Current Account Deficit (CAD) estimated at USD 70.3 billion by encouraging flow of Foreign Direct Investment and Foreign Institutional Investment.
Source: PTI
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Reader's comments(1)
1: Fiscal deficit can be zeroed very easily if the Government bring back black and unaccounted money, wherever it is lying, into the system and also confiscating and realizing the property acquired by the corrupt means particulary by the politicians and beaurocratic officials but the parlimentarian should be bold enough to do so. Government need not think too much on levy of taxes, hiking the prices and puting all kind of restrictions on the common people etc. It is enough for the government to concentrate only one point agenda that is how to bring back black and unaccounted money and property acquired through corrupt means into system and by making legislation stipulating that policicians shall not have personal networth exceeding Rs. 1 cr and making such politician to surrender excess to the government thereby nation can generate very rich cash generated nation and can excel better than USA. The central government need not think too much on subsidies, concessions and allowances and waste their valuable time. If it is done, I thinks the nation can sail smoothly without imposing harsh steps on the common people and nation can become richer country in the world. CAN GOVERNMENT TAKE SUCH BOLD AND TOUGH STPES?
Posted by:viswanath - 02 Nov, 2012