Finance minister Pranab Mukherjee on Sunday said fiscal deficit at 4.6 per cent in

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2011-12 is achievable while the net market borrowings of Rs 3.43 lakh crore will be carried out in an undisruptive manner.

“I have brought the fiscal deficit down to 5.1 per cent of GDP in 2010-11 and 4.6 per cent in 2011-12, which improves on my own target under the last year’s medium term fiscal policy statement,” he said. Also the net market borrowings have been kept at Rs 3.43 lakh crore for 2011-12, which is marginally lower in absolute terms than the budget estimates of 2010-11. The lower net borrowing should give space for growth in private investments, he said.

He was speaking on the sidelines of Assocham Conference on Emerging Economic Scenario on Sunday. “The borrowing programme of the government, which will be finalised in consultation with the Reserve Bank of India, will be carried out in a non-disruptive manner,” Mukherjee said. The GDP growth in 2010-11 has been swift and broad-based and the economy is back to pre-crisis growth trajectory, he said.

“Our tax revenues have grown at an exceptional rate and there has been a strong rebound in our exports. As a result, the current account deficit is less than what was earlier expected. All this gave me the confidence to effect a sharper fiscal consolidation,” he said.

Mukherjee said the budget proposals for 2011-12 are aimed at bringing a stronger fiscal consolidation and to expand the resource space for private enterprise.The government is focusing on an inclusive development process. It is undertaking reforms for simplifying and placing the administrative procedures concerning taxation, trade and tariffs and subsidies on electronic interface, free of discretion and bureaucratic delays. “This would also prepare the ground for the implementation of the DTC and hopefully the GST as well from April 2012,” Mukherjee added.

The economy has become remarkably resilient to external and domestic shocks. It reflects a maturing of the economic management and the growing competitiveness of enterprise, Mukherjee said. However, he expressed worries on the existing sovereign debt crisis in Europe. “I hope it does not spread all over Europe. If it happens, there maybe another global meltdown.”