Fiscal deficit to remain within 6.8% target : FM

Fiscal deficit to remain within 6.8% target : FM
Business Standard, December 15, 2009, Page 6

Press Trust Of India / New Delhi

Enthused by robust performance of the economy in the second half of 2009-10, Finance Minister Pranab Mukherjee today said fiscal deficit would not exceed the target of 6.8 per cent of the gross domestic product (GDP).

“With the prevailing trends in receipts and expenditure, coupled with better-than-expected performance of the economy in the second quarter, it is expected the fiscal deficit will remain within the estimate of 6.8 per cent,” he said while seeking the approval of the first batch of supplementary demands for grants in the Rajya Sabha today.

The supplementary demands for grants, which seek to raise the public expenditure by an additional Rs 25,727 crore, were approved by the Lok Sabha last week.

The government had pegged the fiscal deficit for the current financial year at 6.8 per cent of GDP.

While presenting the Budget for 2009-10 in July, Mukherjee had said the government took a conscious decision to provide fiscal stimulus to the economy to minimise the impact of the global financial meltdown.

“Overall financial performance in the first half of 2009-10 is in line with the Budget Estimate presented in July 2009. At the same time, impact of these stimuli have started showing results, with the economy recording a 7 per cent growth in the first half of 2009-10,” he added.