India can't sustain high fiscal deficit: Chidambaram

Published: 14th March 2013 07:28 PM  |   Last Updated: 14th March 2013 07:28 PM   |  A+A-


India's fiscal deficit which is expected to remain at 5.2 percent of the GDP in the current financial year is high and the country cannot sustain this, Finance Minister P. Chidambaram said Thursday.

"Fiscal deficit is still very high. We cannot sustain 5.2 percent. We have to bring it down," Chidambaram said while replying to a discussion on the national budget for the 2013-14 fiscal in the Lok Sabha.

Chidambaram said the focus of his budget for the next financial year was on containing the fiscal deficit that could lead to a macro-economic disaster if not checked.

"I sincerely appeal to all members to support the path of fiscal consolidation," he said.

In the union budget for 2013-14 presented Feb 28, Chidambaram proposed to contain the fiscal deficit at 5.2 percent of the gross domestic product (GDP) in the financial year ending March 31 and bring it down to 4.8 percent in 2013-14.

Chidambaram said the stimulus packages provided in the aftermath of the global financial crisis of 2008-09 have resulted in high fiscal deficit and created inflationary pressure.

He pointed out that the government had announced stimulus packages to boost economic growth as the world economy was going through a difficult phase.

The finance minister expressed hope that India's economic growth would accelerate to over six percent in the financial year beginning April 1 and above seven percent in the following year.

The Indian economy is expected to grow at around five percent in the current financial year, according to the Central Statistics Office (CSO) data.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp