Fiscal consolidation steps, more Sebi measures soon: DEA secy

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KG Narendranath: New Delhi, Aug 22 2012, 02:44 IST

The promised fiscal consolidation pro-cess will begin from this year itself and the attempt will be to ensure the Centre’s fiscal deficit will be “as close as possible to the budgeted level of 5.1% (of gross domestic product)”, department of economic affairs secretary Arvind Mayaram told FE. He added that the Vijay Kelkar committee entrusted with preparing a new, “very clear” road map for fiscal correction will also recommend specific steps, including those required to be taken in the current year.

The committee will give its report to the finance ministry next week.

A key member of finance minister P Chidambaram’s team, Mayaram, who took over as DEA secretary on August 1, said “both direct and indirect investments” in the economy would be given a fillip through policy and administrative action. He said the Securities and Exchange Board of India (Sebi) was finalising another set of “reform measures” for capital markets in line with the objective of getting savers to look at financial instruments rather than gold or real estate. “These measures will not be delayed... You will get to hear from us in 15-20 days,” he said, without giving details. On August 16, Sebi had announced a slew of measures aimed at helping firms raise resources and persuading savers to invest in mutual funds.

Without elaborating on how the requisite spending control would be achieved (integral to which is cutting oil and nitrogenous fertiliser subsidies to curb revenue expenditure), the official said the Kelkar panel was seized of the matter.

He, however,

... contd.

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