Calling the adherence to fiscal deficit target of 4.6 per cent of GDP in 2011-12 as a 'challenging task', the Finance Minister Pranab Mukherjee expressed the necessity of filling the gap between the loopholes currently existing in the economic parameters in Union Budget 2012-13. The fiscal deficit for the previous fiscal was recorded at 4.7 per cent.
“As I set about preparing the Union Budget for the next year, I have to take stock of the developments in the past months and find ways to address the slippages, the gaps and building on outcomes that need to be consolidated in the ensuing years," said Mukherjee.
Meanwhile, forecasting the trend of development in the last quarter of the fiscal, the minister added that the remaining months are expected to create difficulty, pushing the growth rate below 7.5 per cent in the current financial year from 8.5 per cent a year ago.
"We have difficult last quarter ahead of us in this fiscal year. Our growth for 2011-12 may be around 7.5 per cent or less," he added.
However, the surge in subsidy bill and poor realisation from disinvestment has made the task difficult.