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Chennai/New Delhi, Jan. 6 (PTI): Finance minister Pranab Mukherjee today said the fiscal deficit for 2011-12 could be more than the projected figure.
Observing that India’s fiscal deficit rose to 6.5 per cent in 2008-09 because of the global financial crisis, he said it was brought down to 4.5 per cent in 2009-10.
“But unfortunately, the fiscal deficit may be more in 2011-12 than projected,” he said, while delivering his address at a three-day international conference organised by the Institute of Chartered Accountants of India here.
In the budget, fiscal deficit is projected at 4.6 per cent of the gross domestic product. Fiscal deficit is the difference between the total expenditure and the total revenue.
The Eurozone crisis and slow progress in other parts of the world have affected India, he said.
“I cannot claim that we have been insulated from the crisis in Europe. It does affect both the developed and under-developed economies.”
Noting that India has strong fundamentals, such as a vast number of technically competent professionals and managers, besides 60 per cent of its population being young, Mukherjee said he had no doubt that the country would come back to a strong growth trajectory by 2020.
“With these strong fundamentals, I have no doubt that we will overcome the shortcomings and come back to the path of higher growth trajectory,” he said.
Mukherjee further added that moderating inflation and a likely reversal of tight monetary policy would boost the economic prospects during 2012.
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