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.

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E-mail ID will not be published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

  • RBI and government intervention is vital if all Indians are to have homes by 2022

    There is a strong case for interest subvention for India’s real estate sector.

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

Varun Dutt

Public perception on climate change

Climate change is already happening; however, surveys conducted in 2008 ...

Parvez Imam

The absoluteness in representations

When a representation replaces the original object or subject, a ...

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