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Monday, February 9, 2009

India's Fiscal Deficit increasing further Condition Alarming

Our Country's current fiscal deficit situation is not comfortable, a top economic adviser said on Monday, while adding the economy was expected to grow at least 7 percent in the 2009/10 fiscal year.

"The fiscal deficit situation is not comfortable. It is important to go back to a comfortable fiscal situation as and when the economy starts improving," Suresh Tendulkar, chairman of Prime Minister's Economic Advisory Council, told a conference.

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"The FRBM Act is not going to be followed this year," he said referring to the Fiscal Responsibility and Budget Management Act. Tendulkar also said lower interest rates were likely to come into play, but he did not elaborate.

Tendulkar said fiscal and monetary packages were infusing liquidity and would stimulate the economy. "The lagged effect of the stimulus packages are likely to take effect in the last quarter of this fiscal."

posted under - Indian Economy Updates, Economy of India, Indian Economy Blog, Indian Economy updates, Fiscal Deficit, Indian Fiscal Deficit
source - REUTERS