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

  • Banning commercial surrogacy will end exploitation of women

    Thousands of infertile couples around the globe come to India—the world’s biggest hub for commercial surrogacy along with Thailand—to rent wombs

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

Japan needs more women in high office

Japan does not rank high in international tables, when it ...

Jemima Raman

Things one learns on a potter's wheel

As things go, watching a shape emerge from a blob ...

Bubbles Sabharwal

Hold the world in the palm of your hand

There is absolute happiness and relative happiness. The poet John ...