Finance Ministry vows to phase out Fiscal deficit

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Ashok Chawla
New Delhi, Jul 16: Speaking to the Confederation of Indian Industry (CII), the Finance Secretary, Ashok Chawla reaffirmed that the indian economy was on its way to recovery and said that the legislative changes that was promised by the Finance Minister, Pranab Mukherjee while presenting the Union Budget will be soon incorporated.

Chawla went on to clarify on steps taken or not taken in the Budget in the post budget session. “The over arching priority of the Union budget of 2009-10 is growth, which takes precedence over fiscal containment," he said.

He also pointed out that in spite of the estimated 40 lakh burrowing on part of the government the fiscal deficit will be phased out. He said that current deficit of 6.8 pc of GDP will be reduced by 1.5 pc every year.

In-Focus: Union Budget 2009-10

Further, Chawla said that the disinvestment of share holding of PSU"s will take place in a systematic manner and that government approves of systematic appraisal of subsidies making them only merit based.

P V Bhide, Revenue Secretary, also spoke in the session and spoke on GST. Since all the states have agreed on having a common rate, there won't be differential rate and also said that the structure and the mechanism on which the rates will be decided will soon be finalized.

Maintaining CII's earlier stance, Mr. Hari S Bhartia, Vice President praised the budget which made space for all sectors.

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