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Govt taking steps to carefully monitor fiscal deficit: FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 per cent of the GDP for the current financial year.

Fiscal Deficit | Nirmala Sitharaman | Centre

Press Trust of India  |  New Delhi 

nirmala sitharaman
Finance Minister Nirmala Sitharaman | Photo: PTI

Finance Minister on Monday said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 per cent of the GDP for the current financial year.

The 'mool mantra' now is that is something that one cannot escape, but at the same time, it needs to be carefully tackled, she said in her post-Budget address to members of PHD Chamber of Commerce.

India has exceeded its target of 3.5 per cent in the current fiscal by a wide margin, due to higher spending to stimulate the economy amid the COVID-19 pandemic.

The -- the excess of government expenditure over its revenues -- has been pegged at 9.5 per cent of the gross domestic product (GDP) in the current fiscal ending March 31, as per the revised estimate.

For the next fiscal, the deficit has been pegged at 6.8 per cent of GDP, which will be further lowered to 4.5 per cent by fiscal 2025-26.

Emphasising that the government has made the Union Budget transparent, she said there was nothing under wraps or swept under the carpet.

"Whatever the government is borrowing or spending is open for everyone to see," she said.

The government has spent big on those areas that provide a big multiplier effect, the minister added.

Observing that funding the long term infrastructure financing is the job of the Development Finance Institution (DFI) she said it is not the job of just one DFI, but it is an opportunity for private DFIs to come into play.

With many private DFIs competing, the entire process would become competitive, she added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Tue, February 09 2021. 00:03 IST