Fiscal Deficit, Current Account Deficitand Inflation
• A new fiscal consolidation path with fiscal deficit at 5.3
per cent of GDP this year and 4.8 per cent of GDP in2013-14 announced by the Government.
• Foreign investment in an imperative in view of the high
current account deficit (CAD).
• FII, FDI and ECB three main source of CAD Financing.
Foreign investment that is consistant with our economicobjectives to be encouraged.
• WPI inflation to about 7 per cent and core inflation to
about 4.2 percent.
• Food Inflation is worrying but needed action is taken by