Fiscal deficit at 4.1pc depends on subsidy control: Rangarajan

Tags: News
Former PMEAC Chairman C Rangarajan today said containing the fiscal deficit at 4.1 per cent of GDP during the current fiscal as proposed by the new NDA government will depend on its ability to control subsidies.

"The re-iteration of fiscal consolidation is welcome but whether he will be able to contain it (fiscal deficit) to 4.1 per cent is to be seen.

"Much will depend on the subsidies.. If they are able to control the subsidies. Certainly, there are certain incentives for savings," former PMEAC Chairman C Rangarajan said.

Outlining the roadmap for fiscal consolidation, Finance Minister Arun Jaitley today said the government will retain the fiscal deficit target for 2014-15 at 4.1 per cent of GDP and reduce it further to 3 per cent by 2016-17.

Presenting his maiden Budget, the Minister said the prevailing economic situation presents a great challenge and there was a need to introduce fiscal prudence that will lead to fiscal consolidation and discipline.

EDITORIAL OF THE DAY

  • Nothing short of a uniform civil code will work in India

    When the Jamiat-Ulama-I-Hind (JUH), a powerful body of muslim clerics dedicated to address the aspirations of the community, turns to quote the religi

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Tushar Gandhi

A democracy must stand up for its people

We are the world’s most populous dem­ocracy, but behave in ...

Purnendu Ghosh

A curious and an innovative mind

Curiosity is hard-wired into our psyche. We all recognise that ...

Shona Adhikari

A good time for European art auctions

This week, we bring you interesting art news and the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture