India’s Chidambaram Outlines Deficit Plan Before RBI Policy
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India unveiled a road map to curb its budget deficit to the least in nine years by 2017, a move seen as a bid to persuade the central bank to cut interest rates in its monetary policy review tomorrow.
The government will gradually reduce fiscal deficit to 3 percent of gross domestic product in the 12 months through March 2017 starting from 5.3 percent in the current year that began April 1, Finance Minister Palaniappan Chidambaram said in a briefing in New Delhi today to outline a fiscal consolidation path. He reiterated the goal of raising money from the sale of shares in state companies and an auction of telecom permits.