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President for cutting subsidies; concerned about fiscal deficit
Expressing concern over fiscal deficit, President Pranab Mukherjee on Monday said if subsidies are not contained below 2 per cent of the GDP, it may pose a serious problem for the economy.
"Fiscal deficit which is not confined to 5.1 per cent of GDP as projected in the Budget and one of the concomitant of which that we must reduce the subsidies and keep it below 2 per cent of GDP is not materialised would pose serious problems," Mukherjee said at felicitation event by CII here.
With the rising global prices of crude oil and hardening of other commodities, it is expected that fiscal deficit could breach the budget estimate for the current fiscal.
The major subsidies given by the Centre are for food, fertilisers and petroleum products.
Highlighting that the current account deficit (CAD) of around 4 per cent is a matter of concern, Mukherjee said, the economic growth "has been very slow, particularly since the global financial crisis".
"2008-09, it was 6.7 per cent. 2011-12, it has recorded 6.5 per cent. The first quarter of 2012-13, it is 5.5 per cent. No doubt it is disappointing," he said.
He added that even when exports have slowed down, the diversification of export destinations is yielding some positive results.
Expressing concern over fiscal deficit, President Pranab Mukherjee on Monday said if subsidies are not contained below 2 per cent of the GDP, it may pose a serious problem for the economy.
"Fiscal deficit which is not confined to 5.1 per cent of GDP as projected in the Budget and one of the concomitant of which that we must reduce the subsidies and keep it below 2 per cent of GDP is not materialised would pose serious problems," Mukherjee said at felicitation event by CII here.
With the rising global prices of crude oil and hardening of other commodities, it is expected that fiscal deficit could breach the budget estimate for the current fiscal.
The major subsidies given by the Centre are for food, fertilisers and petroleum products.
Highlighting that the current account deficit (CAD) of around 4 per cent is a matter of concern, Mukherjee said, the economic growth "has been very slow, particularly since the global financial crisis".
"2008-09, it was 6.7 per cent. 2011-12, it has recorded 6.5 per cent. The first quarter of 2012-13, it is 5.5 per cent. No doubt it is disappointing," he said.
He added that even when exports have slowed down, the diversification of export destinations is yielding some positive results.
