Fiscal Deficit Not In Double Digits: Ahluwalia

 @ibtimes
on June 22 2009 5:50 AM

RTTNews - In a pacifying statement, Indian Planning Commission Deputy Chairman, Montek Singh Ahluwalia said that though due to high government borrowing the fiscal deficit will be high, it would not be in double digits, reports PTI.

He said that bankers are worried about government's huge borrowing and is hesitant to bring down interest rates. They also feel that the interest rates on huge borrowing will compel them to retain liquidity. However, he said that we should wait till the budget to have a clear picture of the government's borrowing.

Refusing to comment on the likely fiscal deficit of the year, he said that a normal fiscal deficit was 3%. He pointed out that U.S. and U.K were running at high fiscal deficits of 10% and 11% of GDP respectively. Hence there was a rise in fiscal deficit for the year and people should not have any concerns about them.

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