After netting the carryover subsidy from FY13, just Rs.30,000 crore is left in FY14 for fertiliser subsidies Finance minister P Chidambaram has achieved a fiscal deficit of 5.2% of GDP for 2012-13, thereby redeeming government’s commitment to contain it within the 5.3% target—though the latter, by itself, is higher than the 5.1% provided for by Pranab Mukherjee in the last Budget. Further, true to exhortations he made during his road-shows to demonstrate that India is serious about fiscal consolidation, he has budgeted the deficit at 4.8% during 2013-14. He also intends to reduce it to 3% by 2016-17. The achievement is more fortuitous rather than being a result of credible efforts made on ground zero. A substantial compression in Plan...
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