Fiscal deficit target of 5.1% of GDP in Budget 2012 realistic: Deepak Parekh, HDFC

NEW DELHI: With the Finance Minister Pranab Mukherjee setting a fiscal deficit target of 5.1% of GDP in the Union Budget 2012-13, Deepak Parekh, Non-Executive Chairman, HDFC is of the opinion that the target is very realistic. " We have to give him the benefit of doubt. He has done his numbers," he told ET Now in a post Budget interview.


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Deepak Parekh has lauded the Finance Minister for admitting that it has been a difficult year for the economy and that the fiscal deficit target has not been met. "FM has increased excise duties and customs duty in some aspects to increase the indirect collection, indirect tax revenues," he added.

Parkeh also feels that Pranab Mukherjee has been practical in setting a growth target of 7.6% for the next financial year. "He is not taking the targets to 8 and 9. I would feel comfortable with a 5.1% fiscal deficit. It is reasonably fair. We have to see how the year goes on but it is realistic," he opined.