Fiscal deficit can be capped at 3.9% this fiscal, says Finance Minister

Finance Minister Arun Jaitley on Monday said the government would be able to cap the fiscal deficit at 3.9 per cent this year. He said despite additional expenditure, the government will keep the fiscal deficit under control. Last year’s economic growth rate would be bettered significantly. The current account deficit is also under control. 

In spite of the global turmoil, the country’s economy was stable. On the other hand, the current global commodities prices placed India at an advantage, he said at the launch of a data service by Cogencis.

However, Jaitley pointed out that certain segments of the economy, such as steel, have been affected. But government policy has been moving in the right direction. The government has opened the economy to new investments and removed government discretion as far as possible. He said public and private sector investments have increased but since private sector had created surplus capacities, it will take some time to recover. Usually the private sector leads in investments, but due to the slowdown the public sector has stepped in. 

He added that due to two consecutive failed monsoons, the government was now looking at investing in the irrigation sector. But while making the investments, fiscal discipline will not be thrown to the winds.