Can pare deficit without hurting people: Patnaik

Tags: Economy
India can easily cut down its fiscal deficit without hurting people, if there is enough political will, a senior finance ministry official, in personal capacity, said on Tuesday.

Given the economic slowdown, high inflation and fiscal consolidation, "it is a difficult question, but if there is a political will, one can easily cut down by 1 percent of GDP without causing pain to people," the finance ministry's principal economic adviser said in a panel discussion, in her capacity as an economist.

She did not specify whether she was referring to a 1 percent of GDP decrease in the fiscal deficit or to subsidies.

Ila Patnaik also said there were enough leakages in schemes and excess subsidies to cut the country's deficit, while replying in her private capacity to a question on fiscal consolidation.

India's fiscal deficit during the 2013/14 fiscal year that ended in March was equivalent to 4.5 percent of the country's gross domestic product, government data showed last month.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Tighter disclosure norms will help public shareholders

    The Securities and Exchange Board of India (Sebi) has proposed changes in listing agreements between companies and stock exchanges, laying down manage

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why UGC must focus on quality

In a vast country like India, where there are pressures ...

Zehra Naqvi

The on-off switch to consciousness

Human consciousness is a complex concept, one that has been ...

Dharmendra Khandal

Religion and conservation must go hand in hand

In 1986, former president of WWF International, HRH Prince Philip, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture