Rupee will correct, fiscal deficit target will be met, assures Chidambaram

Written by feBureau | New Delhi | Updated: Sep 6 2013, 11:29am hrs
Finance minister P Chidambaram said on Thursday the rupee will correct over a period of time as steps were being taken to stabilise it. In a discussion on the demand for grants in the Lok Sabha, Chidambaram also said that India's fiscal deficit target of 4.8% of the GDP for FY14 was a red line and will not be breached.

The value of rupee is indeed a matter of concern. We think it has overshot its value. Rupee correction will take place, the minister said. The rupee has to find its value in the market, depending upon macro factors.

The rupee, one of the worst-performing currencies in emerging markets over the past few months, has been volatile and on a constant slide since the US Federal Reserve announced the tapering off of its quantitative easing programme. It touched an all-time low of 68.80 to a dollar last month, but has strengthened since then.

Lok Sabha passes demands for grants

The Lok Sabha on Thursday passed the Supplementary Demands for Grants, allowing the government to spend an additional R7,500 crore.

The government last month sought Parliaments approval to spend the additional sum, including R1,000 crore for setting up the Nirbhaya Fund for safety of women, and a similar amount for womens bank.