Fiscal deficit target won't be breached: Montek Singh Ahluwalia

NEW DELHI: Exuding confidence that the fiscal deficit target for this year will be met, Plan panel Deputy Chairman Montek Singh Ahluwalia today said Finance Minister P Chidambaram will not resile from his promise of maintaining fiscal discipline.

"I believe the Finance Minister. I strongly believe, seriously. I think we will," he replied when asked whether India will meet the fiscal deficit target.

He was speaking to reporters on the sidelines of Delhi Economic Conclave, 2013.

Chidambaram had asserted on several occasions that the red line of 4.8 per cent of GDP for the fiscal deficit will not be breached.

When asked whether it would be difficult for the government to meet the fiscal deficit target in view of likely populist measures ahead of Lok Sabha polls, Ahluwalia replied: "I don't believe that the Finance Minister will resile from his promise (of maintaining fiscal discipline and meeting fiscal deficit target)."

Earlier inaugurating the conclave, Chidambaram said: "The agenda (is) obvious. At the top of the list is fiscal consolidation. There can be no compromise -- and I speak for the government -- there will be no compromise on the decision to walk the path of fiscal prudence and contain the fiscal deficit step by step, year by year, until we reach the goal of 3 per cent of GDP in 2016-17."

Yesterday, rating agency Fitch had expressed apprehensions that the poor performance of the Congress in the recent assembly elections could push up the Centre's fiscal deficit as there may be an "increased likelihood of political pressure to limit expenditure cut-backs."

The setback faced by the Congress in the state elections, it added, "could potentially raise political pressure on the government's near-term fiscal goals".

The Congress was defeated in the elections held in Madhya Pradesh, Chhattisgarh, Rajasthan and Delhi.