Govt to take a fresh view on fiscal deficit: Mukherjee

New Delhi, May 26 (PTI) Promising all "appropriate
measures" for the economy, India's Finance Minister Pranab
Mukherjee Tuesday said the government would take a fresh look
at fiscal deficit as it has crossed the previously
self-imposed ceiling.

"I have priority for both growth and maintaining fiscal
prudence, but at what point of time which will get more
priority is to be determined depending on the situation,
Mukherjee said in an interview with TV news channel CNBC-TV18.

"For the year 2008-09, we have gone beyond the figures
projected in the interim Budget. What is needed right now is
stimulus, but at the same time we cannot indulge in fiscal
profligacy. We shall have to restore the balance," he said.

Asked if Fiscal Responsibility and Budget Management
(FRBM) was a priority for him, the Finance Minister said:
"What I have said in the interim Budget is my observations. I
have also given a detailed explanation in my speech. That's
why I had to cross the ceiling which was imposed and we shall
have to take a fresh look at it."

As per the government's estimate, fiscal deficit is
projected to widen to 5.5 per cent of the GDP during 2009-10.

The shortfall was "on account of the government's
proactive fiscal measures initiated to counter the impact of
global slowdown on the Indian economy," Mukherjee had said in
his interim Budget presented in February this year.

In a separate interview with another TV channel NDTV
Profit, Mukherjee said the government cannot afford to give
up the fiscal discipline.

Speaking to CNBC-TV18, Mukherjee added that the government
would take all appropriate measures needed for the economy.

Asked whether another stimulus package was needed for
revving up the economy, he said: "We have the strength in
economy. The Indian economy is resilient. It has not done as
badly as some of the advanced economies have done. From that
strength we have to build on."

"... There are certain sectors, which have been very
badly hit by the global financial crisis like export sectors,
particularly textile, leather, gems and jewellery’s problems
ought to be addressed. The IT sector has also been affected."

He said the government responded immediately after the
impact of global crisis became visible in the country and
first stimulus package was announced by the Prime Minister on
December 7.

"...Subsequently in January (the second package came) and
the third one that I announced in my interim Budget. So, these
things have started having a good impact on it," he said.

"... It will take some time for us to have a total impact
(of the packages)... Even before the presentation of Budget, a
couple or few weeks will be available to me. So, considering
all these aspects, whatever is appropriate, I will take the
appropriate measures," he said. PTI DP
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