The fiscal deficit numbers will stay high and one can expect some relief only after five years. The Planning Commission believes that the fiscal consolidation targets for the next three fiscals will be off target because of the domestic and international conditions and one can expect the fiscal deficit to reduce to 3% levels only by the end of the 12th Plan ie FY17 according to the draft bill 5-year plan.
The document also say that the government did not compress the fiscal deficit target immediately. However, to achieve fiscal consolidation, the government has to bring down its subsidy levels to 1.7% by FY17 and substantially increase its revenues.
It expects the growth number to be at 9% level by FY16 and FY17.
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