Confident of achieving fiscal deficit target of 4.1%: Sinha

MoS Finance says extension of excise duty concessions for auto companies under consideration

The government is committed to containing fiscal deficit at 4.1% of the Gross Domestic Product (GDP) this fiscal, Minister of State for Finance Jayant Sinha said today.

"We are considering all options (cutting expenditure). We are very confident that we will be able to achieve fiscal deficit target of 4.1% in the current fiscal year," Sinha said on the sidelines of an event here.

Recently, the 'Mid-Year Economic Analysis 2015' tabled in Parliament had said the government is "committed to meeting the fiscal targets for FY 2015, despite the difficult odds engendered by a combination of.. factors".

The government has targeted fiscal deficit of 4.1% of GDP for FY15, down from 4.5% in the previous year and plans to reduce it further to 3% by 2016-17.

Asked whether the government is considering relaxing fiscal deficit target to give itself room to revive public investments, Sinha said: "We think it's very important to demonstrate fiscal prudence that establishes our credibility globally as well. As of now, we are very much on the road map and continue to pursue that.

"Obviously we need to be able to find resources for public investments and kick start the investments. We are working very hard on that as well and also number of innovative things we intend to do."

On whether the government is considering extending excise duty concessions for auto companies beyond December 31, the Minister said the matter is under consideration.