Fiscal deficit to reduce to 5.5 percent next financial year

New Delhi, Feb 26 (Calcutta Tube) The fiscal deficit will come down to 5.5 percent in the next fiscal from the estimated 6.8 percent in this financial year, Finance Minister Pranab Mukherjee said in his budget speech Wednesday.

He said the fiscal deficit would come down further in 2011-12.

The deficit during 2010-11 would be 5.5 percent which would work out to Rs.381,408 crore (Rs.3.81 trillion/$82.29 billion) and the government would need to borrow about Rs.345,010 crore to fund expenses, Mukherjee said.

The fiscal deficit will be 4.8 percent in 2011-12, and further come down to 4.1 percent in 2012-13.

‘The fiscal deficit targets are according to those set by the 13th Finance Commission,’ said Mukherjee.

Fiscal deficit, a reflection of government borrowings, is estimated to touch 6.8 percent in the current fiscal, up from 6.2 percent in the previous financial year, mainly on account of the stimulus measures of Rs.186 lakh crore offered during December 2008 and January 2009.

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