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

  • Public musn’t pay for domestic servants for our diplomats

    Nothing seems to have changed in the year and half since the fur that flew thick and fast over the case of diplomat Debjani Khobragade and her maid Sa

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture