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Govt to cut fiscal deficit to 3% after FY12: FM
December, 16th 2009

The government will bring down its fiscal deficit to 3% of gross domestic product after fiscal year 2011-12, Finance Minister Pranab Mukherjee told parliament on Tuesday.

The deficit is set to widen to 6.8% in the current fiscal year to March 2010, after tax cuts and stimulus spending.

Mukherjee said this level of deficit was "unsustainable" and it would be reduced to 5.5% in fiscal year 2010-11 and to 4% in 2011-12.

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