By IANS,
New Delhi: A day after presenting the budget for 2011-12, Finance Minister Pranab Mukherjee said he was confident of reducing the fiscal deficit to 4.6 percent during the year.
“I have brought the fiscal deficit down to 5.1 percent of GDP in 2010-11 and 4.6 percent in 2011-12, which improves on my own target under the last year’s medium term fiscal policy statement,” Mukherjee said at a post-budget meeting with industry associations here Tuesday.
He said the people need not be apprehensive about 4.6 percent fiscal deficit target as it was based on a realistic view on revenue buoyancy.
“I have kept the net market borrowings at Rs. 3.43 lakh crore for 2011-12, which is marginally lower in absolute terms than the budget estimates of 2010-11. This should give the necessary space for growth in private investments,” Mukherjee said.
“I am confident that the borrowing programme of the government, which will be finalised in consultation with the Reserve Bank of India, will be carried out in a non-disruptive manner,” he added.
The finance minister said he wanted to convey a sense of continuity and stability in the government’s approach to policy management through the budget.
On economic growth, Mukherjee said: “The GDP in 2010-11 has been swift and broad-based and the economy is back to its pre-crisis growth trajectory.”
The Indian economy is expected to grow 8.6 percent in the current fiscal.
“Our tax revenues have grown at an exceptional rate and there has been a strong rebound in our exports. The current account deficit is likely to be around the level in 2009-10. All this gave me the confidence to effect a sharper fiscal consolidation,” the minister said.