Hyderabad, Mar 23: Assailing the NDA government for failing to address the problem of growing fiscal deficit, former Union finance minister P Chidambaram has expressed fear that fiscal deficit might cross six per cent mark this year. "The 2003-04 budget does nothing to control fiscal deficit and fails the test of fiscal consolidation", the former finance minister said.
He made these observations while delivering a lecture `second generation economic reforms - budgetary imperatives - a critique of union budget' at the federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) here last night.
Stating that as the combined fiscal deficit of the centre and states has crossed 10 per cent mark, Chidambaram said "we are back to square one after containing the deficit in the first wave of economic reforms taken up in 1991".
Favouring complete removal of ceilings on foreign direct investments, Chidambaram said fixing a cap on FDI "was meaningless". Government's presence in several sectors like telecom, banking, mining, railways, seaports, steel and coal has to come down to unlock the resources like capital, land, building and personnel, he said.
He criticised the Union Budget saying it "is giving an illusion of huge investments". Bureau Report