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'Fiscal deficit for 2000-01 to be about 5.1 per cent'

The government said on Monday that the fiscal deficit for 2000-01 would be close to the budgeted 5.1 per cent of Gross Domestic Product.

"The figures are yet to be finalised, but we are expecting it to be in the region of 5.1 per cent of GDP," finance secretary, Ajit Kumar, told reporters on the sidelines of a seminar organised by the National Institute of Public Finance and Policy.

Expressing concern over the declining public investments and rise in fiscal deficit, Kumar said, "There is an urgent need to improve fiscal adjustments by restraining expenditure, boosting public investment and augmenting the Tax:GDP ratio.

"Continued higher fiscal deficit can not go hand in hand with economic growth," he said, adding growing subsidies was "untenable" for the government.

Kumar stressed on revenue growth saying the government was moving towards a simplified tax structure. "Tax structure will be further simplified and rationalised towards a uniform level," he said.

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