Finance Minister Pranab Mukherjee on February 28 unveiled the Budget, proposing aggressive cut in the fiscal deficit and a small increase in overall government spending for the fiscal year beginning April 1.
Pranab Mukherjee has exuded confidence that the fiscal deficit target of 4.6 per cent of the GDP for 2011-12 would be achieved. "There are some people who have expressed some doubts over fiscal deficit target, but I can assure you they need not worry over numbers," Mukherjee said.
He said the government spent Rs 50,000 crore on social projects during the current fiscal as it received revenues from sale of spectrum. "As I may not have that bonanza next year, I will have no compulsion to spend more," he added.
In his Budget presentation for 2011-12, Mukherjee had proposed to reduce the fiscal deficit to 4.6 per cent in the next fiscal from 5.3 per cent of the gross domestic product (GDP) this year.
Through the Budget proposals, he said, "I wanted to convey a sense of continuity and stability in our approach to policy management of the economy."