More reforms key to fiscal consolidation: Economic Survey

The fiscal deficit for the current fiscal is estimated at 4.8%, but the reduction over last year’s estimated figure has been possible largely due to one-off revenues from disinvestment and the spectrum auction.

“A beginning has already been made with the reforms announced in subsidies, some of which have already been implemented,” the Survey said.

“With significant levels of reduction envisaged in the combined State Government deficit in 2010-11 (BE) and the progress in the current fiscal in respect of Central Government finances, the resumption of the process of fiscal consolidation at both Centre and State levels as also of the consolidated General Government has really begun after two years of purposive expansion. With continued growth momentum, the prospects for sustaining and deepening the consolidation process remain bright,” the Survey said.