Breaking News

You are here » Indian-Commodity  :  Economy  :  To achieve the fiscal deficit target more efforts are required: Rajan

24-Dec2012

To achieve the fiscal deficit target more efforts are required: Rajan

Chief Economic Advisor Raghuram Rajan has said that to achieve the revised fiscal deficit target of 5.3 percent of GDP, government needs to take more painful decisions and the diesel price hike and cut in subsidised LPG cylinders  are only the preliminary steps to keep the subsidy bill under check. Though he said that we are moving in the right direction with a cap of cylinders and increase in the diesel prices are in right direction but need to do more to bring the subsidy down to 2 percent of the GDP.

The government's subsidy bill is likely to go up substantially in the 2012-13 fiscal from the estimated at around Rs 1.80 lakh crore on the account of domestic and global factors. The government has already sought an additional Rs 28,500 crore from Parliament towards the fuel subsidy.

Rajan further stated that the government can check the subsidies target in a better way through the cash transfer schemes and India can achieve 6 percent GDP growth in the second half of the current fiscal. He added that the investments have slowed down across the economy and to push the economy, all the investments which are stalled need to be on track and keep going for new investments.


Related News

View all news

Near-term growth prospects remain favourable in India: IMF

International Monetary Fund (IMF) in its report 'Global prospects and policy challenges', meant for the G20 meeting of finance ministers in Ankara has stated that near-term growth prospects remain favourable......

Government accepts recommendations of A P Shah panel

Amid the market slump and exodus of the foreign funds from the country, the government giving much needed relief has accepted the recommendations of A P Shah-led panel that minimum alternate tax (MAT)......

RBI governor finally buzzes to the demand, hints at rate cut

Reserve Bank of India (RBI) Governor Raghuram Rajan finally hinting for a rate cut has said that inflation has come down to the comfort zone quicker than expected and he is keeping a watch on......

Top News

View all news

Lupin, Tata Steel, Cipla and NBCC to see some action today

Lupin Pharmaceuticals, a subsidiary of Lupin, has launched its Duloxetine 40 mg Delayed-Release (DR) Capsule, which is the first and only generic Duloxetine formulation to become available in 40 mg dosage......

Near-term growth prospects remain favourable in India: IMF

International Monetary Fund (IMF) in its report 'Global prospects and policy challenges', meant for the G20 meeting of finance ministers in Ankara has stated that near-term growth prospects remain favourable......

HDFC Bank, ITC, Infosys and Syngene International to see some action

HDFC Bank, India's second largest private bank, cut its base rate by 35 basis points to 9.35%, from the existing 9.70 percent, thereby making loans from the bank cheaper. Earlier in June, the bank had......