Can pare deficit without hurting people - Patnaik

NEW DELHI Tue Jun 10, 2014 11:49am IST

Labourers work at the construction site of a commercial complex in Agartala, August 27, 2013. REUTERS/Jayanta Dey/Files

Labourers work at the construction site of a commercial complex in Agartala, August 27, 2013.

Credit: Reuters/Jayanta Dey/Files

Related Topics

NEW DELHI (Reuters) - India can easily cut down its fiscal deficit without hurting people, if there is enough political will, a senior finance ministry official, in personal capacity, said on Tuesday.

Given the economic slowdown, high inflation and fiscal consolidation, "it is a difficult question, but if there is a political will, one can easily cut down by 1 percent of GDP without causing pain to people," the finance ministry's principal economic adviser said in a panel discussion, in her capacity as an economist.

She did not specify whether she was referring to a 1 percent of GDP decrease in the fiscal deficit or to subsidies.

Ila Patnaik also said there were enough leakages in schemes and excess subsidies to cut the country's deficit, while replying in her private capacity to a question on fiscal consolidation.

India's fiscal deficit during the 2013/14 fiscal year that ended in March was equivalent to 4.5 percent of the country's gross domestic product, government data showed last month.

(Reporting by Frank Jack Daniel; Writing by Malini Menon; Editing by Anand Basu)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS EXCLUSIVE

REUTERS SHOWCASE

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

Modi In U.S.

Modi In U.S.

Obama, Modi work to deepen improving U.S.-India ties  Full Article | Full Coverage 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Hopeful of Profit

Hopeful of Profit

GM sees first European profit in 2016 after years of losses  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage