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“The agenda (is) obvious. At the top of the list is fiscal consolidation. There can be no compromise — and I speak for the government — there will be no compromise on the decision to walk on the path of fiscal prudence and contain the fiscal deficit step by step, year by year, until we reach the goal of 3 per cent of GDP in 2016-17,” he said.
The government has set a fiscal deficit target of 4.8 per cent of GDP for the current financial year.
Chidambaram has asserted several times that the red line of 4.8 per cent of GDP for the fiscal deficit will not be breached.
The Finance Minister said India would also need to focus on the revenue deficit to ensure that borrowings were not used for consumption.
India’s current account deficit (CAD) touched a record $88 billion in 2012-13,
Chidambaram also said the country should avoid importing gold and raw material that are available at home.
“Nor should India import coal when it has coal in abundance, nor should India tie itself in policy knots and be forced to import commodities which they have the capacity to produce and manufacture,” the Minister said.
Meanwhile, Asian shares fell for the second consecutive day on Thursday as as investors speculate the US budget deal will give the US Federal Reserve confidence to curb the $85 billion stimulus program.