Fiscal deficit to remain within target of 6.8%: Pranab

Last Updated: Monday, December 14, 2009 - 21:09

New Delhi: Buoyed by the robust performance
of economy during the second half of the 2009-10, Finance
Minister Pranab Mukherjee on Monday said fiscal deficit would not
exceed the target of 6.8% of the Gross Domestic
Product (GDP).

"With the prevailing trends in receipts and expenditure,
coupled with better than expected performance of the economy
during the second quarter, it is expected that the fiscal
deficit will remain within the estimate of 6.8%," he
said while seeking the approval of the first batch of
supplementary demands for grants in the Rajya Sabha here.
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 fiscal at 6.8% of the GDP.

While presenting the budget for 2009-10 in July, Mukherjee
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 fiscal
year 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 7%
growth in the first half of 2009-10", he added.

-PTI



First Published: Monday, December 14, 2009 - 21:09

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