Govt in no mood for a general stimulus package: Rangarajan

Chairman of Prime Minister's Economic Advisory Council C Rangarajan today said the government was determined to contain fiscal deficit.

[caption id="attachment_361872" align="alignleft" width="380" caption="Fiscal deficit stood at 5.76 percent of GDP during 2011-12. Reuters"][/caption]

"There is a debate between austerity and growth and we have made our mind to contain fiscal deficit," Rangarajan said. He said the government would not go for providing stimulus across the board and that only specific sectors would be considered.

"There will be no general stimulus packages but only specific interventions would be made," he said.

Rangarajan said there was scope for cutting subsidies on LPG, fertiliser and diesel. "There is a scope for reducing subsidies in LPG, diesel and fertiliser. But we must build up a political consensus for good economics," he said.

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Fiscal deficit stood at 5.76 percent of GDP during 2011-12 and the government is targeting to bring it down to 5.1 percent in this fiscal.

PTI