PM contemplating steps to contain fiscal deficit: Chidambaram

"I think the Prime Minister-cum Finance Minister is contemplating a number of measures to tighten revenue collection and to control wasteful expenditure. We have already imposed across-the-board cut on non-plan expenditure. That will help," he told reporters here.

Identifying savings, investment, fiscal deficit and current account deficit as four fundamental issues that need to be tackled, he said the measures being taken by the government would improve savings and investment. "We will get back to the high growth rate," he said.

On the current account deficit, he said it depends on the international commodity prices and rupee exchange rate as the country imports many commodities it needs.

"Once confidence builds, the exchange rate will stabilise. And we must produce more in the country and depend less on imports ... The current account deficit will come down over a period of time. So, if we can tackle the four issues -- savings, investments, current account deficit and fiscal deficit -- you will see we get back to the high growth path."

The Indian economy is facing slowdown. The economic growth hit a nine-year low of 6.5 per cent in 2011-12. Fiscal deficit is seen rising to Rs 5.13 lakh crore or 5.1 per cent of the GDP in the current financial year.

Also, current account deficit (CAD) widened to the highest ever level to 4.5 per cent of GDP at USD 21.7 billion in January-March period of 2011-12.