Amid rising concerns over the widening fiscal deficit of the country, Economic Affairs Secretary Arvind Mayaram has said that country’s fiscal deficit will remain within set target at 4.8 percent of GDP for current fiscal as the government is taking various measures to maximize revenues. During the first six month of current fiscal, fiscal deficit of the country has touched Rs 4.12 lakh crore, or 76 percent of the budget estimate of Rs 5.42 lakh crore.
By adding further, Mayaram said that the government is considering spiking government bonds’ yields and will calibrate borrowing programme according to the market conditions. Mararam is also confidence to meet the divestment target of Rs 40,000 crore for current fiscal. However, during the first seven months, the government was able to garner only about Rs 1,150 crore through disinvestment.
In order to contain the country's fiscal deficit, the government has been taking a number of measures including banning government departments for holding meetings in 5-star hotels among others to cut government spending in non-critical areas. Finance Minister P Chidambaram had also said that the government can reduce spending soon by some large government departments despite up coming national election. In the previous financial year, the government was able to contain the fiscal deficit at 4.89 percent of GDP, against the budgeted target of 5.1 percent of GDP.
