India's fiscal deficit seen at 4.1pc of GDP in 2005-06
Afp, New Delhi
India's fiscal deficit will fall to a better-than-expected 4.1 percent of GDP for the year to March 2006 and 3.8 percent next year, the finance minister said Tuesday as he presented the budget. "Last year, I reluctantly pressed the pause button on fiscal correction," said Finance Minister P. Chidambaram, who had estimated the revenue deficit for the current financial year at 2.7 percent and the fiscal deficit at 4.3 percent "I am happy to report I have been proved wrong," he told parliament, projecting the revenue deficit for this fiscal year at 2.6 percent and the fiscal deficit at 4.1 percent. For the following financial year, he forecast the revenue deficit at 2.1 percent and the fiscal deficit at 3.8 percent. "I believe that I have redeemed my promise that the process of fiscal correction will be resumed in 2006/07," he said.
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