New Delhi: A day after the Kelkar committee report was made public, the head of the government-appointed panel, Vijay Kelkar, said that the fiscal deficit would be reined in at 5.2 per cent of the GDP if the recommendations of the panel are accepted.
Kelkar refuted allegations that the suggestions made by the panel are contrary to the government’s objective of sustained and inclusive growth.
Further, he said: “More needs to be done in the area of disinvestment, pruning of expenditure and continued price revisions.”
Kelkar also said that the panel has put forward its suggestion before the government that the futures and options (F&O) market should be put to use for the disinvestment drive.
The government aims to garner about Rs. 30,000 crore by way of disinvesting some of the state-run companies in the current financial year (FY13). Kelkar said four to five public sector units (PSUs) are ready to be divested, adding that this itself will help meet the disinvestment target.
He further added that it would not come as a surprise to him if the government’s borrowings come in lower than the limit.
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