Govinda Rao, member, PMEAC and Siddhartha Roy, advisor to the Tata Group, discuss various measures to manage fiscal deficit and reduce subsidies
In CNBC-TV18's Budget Special edition of Indianomics, Govinda Rao, member, Prime Minister's Economic Advisory Council (PMEAC) and Siddhartha Roy, advisor to the Tata Group, discuss various measures to manage and ultimately, reduce fiscal deficit. The panelists called for a reduction of subsidies and making fuel prices more market-oriented.
Here's an edited transcipt of the panel discussion on CNBC-TV18's Budget Special. Also watch the accompanying video.
Q: Ultimately, the fiscal deficit is a function of the nominal GDP. What kind of GDP do you estimate, though in the current year we will still manage a nominal GDP of 16% largely because of high inflation?
Rao: Yes, in fact this year's growth numbers, according to the CSO (Central Statistics Office), is estimated at 6.9%. So in the coming year, I think it will be anything between 6.5% and 7%. If you have another 5% - 6% inflation, the GDP would not be more than something like 13%-14%. I don