Target of 4.1% fiscal deficit is achievable: Finance Secretary

Says Centre has taken enough steps to achieve this goal

Finance Secretary Arvind Mayaram said on Monday containing fiscal deficit at 4.1 per cent of gross domestic product in 2014-15 is a daunting task but the government has taken enough measures to achieve this goal. “It is definitely a tough task. But, we are confident, as the economy is looking up and there is buoyancy in growth. There is no reason why we cannot achieve it,” he told reporters on the sidelines of an international conference on public policy and management, organised by the Indian Institute of Management here. He added, “The market and the rating agencies have been sceptical about achieving the target.

But, we are well on course.”

Earlier, speaking at the conference, he said the budget was in tune with a larger picture in mind, which would be translated to reality in the near future.

 

"The budget has been criticised for not being bold enough but the reality is that there is a method to this apparent madness. A major aim was to renew the government's commitment to the poor; we also hope to give infrastructure and its development a push in the right direction. The budget and all public policies are made with the country as a whole in mind, in a way that would not only propose solutions but also provide insight to the outcome of the policy," he said.

Mayaram added that the government also looked to increase the savings and investment rates of the people in the country by providing incentives and promising a stability in taxation.

Speaking on the occasion, Harun R Khan, deputy governor, Reserve Bank of India said the main objective of debt management is to ensure that the government's financing needs and its payment obligations are met at low cost over the medium to long run consistent, with a prudent degree of risk.

"As of now, the debt ratios are reasonable as the trend for past decade is declining. In the new millennium, Debt to GDP ratio is decreasing and stands at 66 per cent of GDP for total government debt," he said.