Budget focuses on reining-in fiscal deficit: Jayant Sinha

The government said on Friday its budget for 2015-16 focuses on reining-in the fiscal deficit and returning investor confidence in the economy.

Initiating the debate on the budget in the Lok Sabha, Minister of State for Finance Jayant Sinha said the government's intentions on the economy have been made amply clear in the document.

The government had been able to rein-in the fiscal deficit from 4.4 percent of the GDP to 4.1 percent during its 8-9 month tenure, adding this was important as the expenditure was way above the revenue collections.

He pointed out that while the government's expenditure stands at Rs.17 lakh crore, its revenue collection is only Rs.11.30 lakh crore - and it had to borrow around Rs.5.7 lakh crore to sustain the spending.

The minister added that the government is focusing on initiatives like the employability of the youth and strengthening the banking system.

Sinha underlined the fact that the banking system was under great stress from the growing NPAs (non-performing assets) due to 1,400 stalled projects and that many of these have been restarted under the NDA-led government.