Observing that India’s fiscal deficit rose to 6.5 per cent in 2008-09 due to the global financial crisis, he said in 2009-10 it was brought to 4.5 per cent.
“But unfortunately, the fiscal deficit may be more in 2011-12 than projected,” Pranab said while delivering his address at a three-day international conference organised by the Institute of Chartered Accountants of India here.
In the Budget, the fiscal deficit is projected at 4.6 per cent of the GDP. Fiscal deficit is the difference between the total expenditure and the total revenue.
He said, “India hoped to register a nine per cent plus or minus 0.25 per cent growth in GDP during 2011-12. The eurozone crisis and slow progress in other parts of the world has also affected India. 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, like 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 India will come back to a strong growth trajectory by 2020.
He said, “With these strong fundamentals, I have no doubt that we will overcome the shortcomings and come back to the path of higher growth trajectory”.