Govt committed to 4.1 per cent fiscal deficit target for 2014-15, says Arvind Subramanian

The government is committed to achieving its fiscal deficit target of 4.1 per cent of gross domestic product (GDP) for the current 2014-15 financial year, Chief Economic Advisor (CEA) Arvind Subramanian said on Friday.

Subramanian said the government will have to consider all measures including spending cuts to meet the target.

Suggesting an investment stimulus, the CEA said, the government should increase public sector spending to revive economic growth in the medium term, a move that would require reviewing all fiscal targets.

Earlier on Friday, a Finance Ministry report tabled in the Parliament said that the country faces a 'major challenge' in achieving its fiscal deficit target for FY15.

The report also forecast the country's GDP growth rate at around 5.5 per cent on a year-on-year basis for the ongoing financial year.

(Reuters)