Wednesday, June 8, 2011
Fiscal deficit: A big challenge.
Fiscal deficit isthe difference between govt. spends and it earns.It is expressed as percentage of GDP>We are currently deficit by 4,17,917 cr. which is 5.1 % of GDP.Finance minister in his budget has estimated 4.6% for the next year.But it is very difficult to achieve it.The biggest problem is of disinvestment.Previousyear disinvestment of PSU's is the theme and successof reducing deficit.But this time the PSU,s which r going to divested r not fundamental sound like Coal india,punjab and sindh bank,MOIL etc.Therefore disinvestment is the biggest challenge for the government.