5 percent and the effective revenue deficit to zero percent

Shri Chidambaram, presenting the eighth budget of his career pegged the fiscal deficit at 5.2 percent for the current financial year and 4.8 percent for FY14, reflecting his commitment to fiscal prudence. Revenue deficit for the current year has been estimated at 3.9 percent and for FY14 at 3.3 percent. By FY17 fiscal deficit is estimated to be brought down to 3 percent, revenue deficit to 1.5 percent and the effective revenue deficit to zero percent. He highlighted the need to curb the country’s current account deficit, and said that he believes it to be a higher worry than the fiscal deficit. He said that growing imports of oil, coal and the country’s passion for gold shall weigh on the CAD, due to which India does not have choice between welcoming and spurning foreign investment.

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