Confident of meeting fiscal deficit target, says Jaitley

Expressing confidence of of meeting the fiscal deficit target, Union Finance Minister Arun Jaitley on Friday said that higher growth would lead to generation of additional revenue.

"If you continue to grow then that growth leads to additional revenue. I am not particularly worried about the fiscal deficit. This year after a long time, not only we will achieve it but also meet the quality of it," Jaitley said while addressing the 13th edition of Hindustan Times Leadership Summit here.

"As an elected government, we have to look at it with a sense of political pragmatism. I don't think it's any longer possible to classify government programmes into traditional ideological brackets. For instance what is the India model? The Indian model is a lot more market centric, growth centric, and encourages private sector activity," Jaitley added.

Jaitley also said many reforms have been brought in the country through checks and balances.

"Tax rate cuts in corporate tax may also be offset by some exemptions which are going. At the same time out of the revenues, a very large part has to go for social security programmes. Small saving rates have to be rationalised but with a sense of political pragmatism," he added.

He also admitted that the government's expenditure on health and education should be higher.

"I agree we need to spend more on health and education. Problem is balancing your budget. India has three to four sources of high expenditure," Jaitley said.

Prime Minister Narendra Modi earlier speaking at the Summit said that the Centre and states must work together for the country's progress.

"India is seen as one of the fastest growing country at a time when the world economy is slowing down. India is not going to progress from Delhi. States have the most important role in India's progress. States and Centre must work together," he said.