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| By Samudranil Mukherjee |
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Friday, April 30, 2010 (12:34:25) |
| Tags : Finance, India, Pranab Mukherjee |
Further fiscal deficit is unsustainable: Finance Ministry |
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| New Delhi, April 30: The Union Finance Minister of India, Pranab Mukherjee has said that India would not be able to sustain any further deficits in the budget for the ongoing fiscal. He has also made it clear that it would not be possible to take loans beyond the present levels.
The Indian government is expected to borrow $100 billion in the present financial year that would be ending on March 2011. This amount is an unprecedented one and would be used for the purpose of shoring up the fiscal deficit. It is assumed that the fiscal deficit this year would amount to 5.5% of the total GDP.
Mukherjee, while addressing the parliament, however, expressed optimism that the present levels of deficit would not be too much for the economy to bear. He has stated, though, that all these factors would have a significant bearing on the way the apex banking body in India, the Reserve Bank of India is able to tackle inflation, which is touching the 10% mark.
Standard and Poor's, a well known rating agency, has stated it would be able to increase the sovereign ranking of India if it was able to achieve economic growth on a consistent basis. A sustainable macroeconomic climate was also necessary as per Standard and Poor's as per increasing India's overall economic ranking was concerned. |
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