Govt not in doldrums, will achieve fiscal deficit target: Basu

Despite tough market conditions, both domestically and globally, the government is committed to rolling outs its divestment plan and achieving the fiscal deficit target of 5.1 percent of GDP, Chief Economic Advisor to the Ministry of Finance Kaushik Basu told CNBC-TV18's Shereen Bhan today.

Earlier in the day, Prime Minister Manmohan Singh too reiterated that his government is determined to take "tough" decisions, including on controlling subsidies, to reverse the expansion of the fiscal deficit, even as he expressed confidence of bringing back the rhythm of high growth of 8-9 percent annually.

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However, economists at rating agencies and fund houses have described the 5.1 percent fiscal deficit target for the next fiscal as an uphill task considering the absence of a clear fiscal roadmap and the still uncertain global environment.

Speaking to CNBC-TV18, Basu admitted that India is going through a very rough patch, but argued that the government alone cannot be blamed for the current slowdown. Compared to its peers globally, he said India is not in doldrums by any comparison and is trying to fast track the reforms process.

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In the government's defence, Basu said that foreign direct investment in multi brand retail is likely in the next six months, while partial decontrol of diesel, which has not been deregulated since June 2011, is on the cards too. "We have submitted advisory plan on partial decontrol of diesel," he added.