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Milestones mark Chidambaram's tenure as FM

December 1, 2008

Buoyant tax revenues helped him rein in fiscal and revenue deficits under the Fiscal Responsibility and Budget Management Act, till March 2008.

From a fiscal deficit of 4.5 per cent in 2003-04, the aim was to bring it down to 3 per cent in the current fiscal ending March 2009. But the implementation of the Sixth Pay Commission recommendations, the populist farmers' debt waiver scheme and an economic slowdown will make the finance minister's task difficult.

Initial estimates show that the Centre is likely to run a fiscal deficit of 4.49 per cent of GDP in the current fiscal. This deficit will be much higher if off-budget liabilities on account of subsidies granted through bonds for the oil, food and fertiliser sectors are also included.

Image: Chidambaram inspects the statue of the bronze bull outside the Bombay Stock Exchange. | Photograph: Indranil Mukherjee/AFP/Getty Images

Also read: How India can help ease global financial crisis

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