Speaking to reporters today, Dr Rangarajan, Chairman of PMEAC, said, " The global situation is not encouraging. The US is stabilising, but that is not so in Europe. "

Estimates for the current account deficit for 2013-14 by the PMEAC was seen at 4.7 pct of GDP, while for 2012-13 it is pegged at 5.1 pct of GDP.

The PMEAC Chairman noted that there was a need to complete price, subsidy reforms in oil products and said that there would be lesser investment in gold as inflation falls.

Speaking on the fiscal deficit, which has remained an area of concern Dr Rangarajan noted, "The Fiscal situation has improved. It has been brought down to 5.2 per cent for FY 2013 and is projected at 4.8 per cent for FY 2014. Several stepS have been taken in the budget," he stated.

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