TNI Bureau: Union Finance Minister P Chidambaram unveiled fiscal consolidation plan to promote investments and high growth and reduce inflation. Expressing concern over the current economy, he said that the government is taking difficult but crucial steps to improve growth.

He expected the fiscal deficit at 5.7 pc of GDP in FY13. He said that the burden of fiscal deficit should be faced by all stake holders. The government will restrict fiscal deficit in the current financial year to 5.3 per cent of the Gross Domestic Product (GDP) and reduce it to 3 per cent by 2016-17. The fiscal deficit was 5.8 per cent in 2011-12.

He expected that the fiscal consolidation will help in moving to a regime of low inflation and high growth. He also hoped that the government would raise Rs 40,000 crore from spectrum auction.