New Delhi, March 12 (IANS) Finance Minister Pranab Mukherjee Friday said steps have to be taken for fiscal consolidation, saying the country cannot continue to live on borrowed resources.
“We have to take steps for fiscal consolidation. We cannot continue to live on borrowed resources,” the finance minister said in the Rajya Sabha during a debate on the 2010-11 budget.

India’s fiscal deficit for the current fiscal is estimated to be 6.8 percent of the GDP (gross domestic product). The government has targeted to bring it down to 5.5 percent by 2010-11 fiscal.

India borrowed 65 per cent of its 2009/10 borrowing of Rs.4.51 trillion in the first half of the current fiscal.

Early this week, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia had said the government would raise over half of its record $100 billion (Rs.500,000 crore) planned borrowing for the next financial year. This, he said, would allow more space for private borrowing as growth picks up.

Asia’s third largest economy is expected to grow over 8.5 per cent in 2010-11, accelerating to 9 per cent the year after.

“India can raise more funds in the first half depending on the economic circumstances,” Ahluwalia had said, without mentioning the exact borrowing figure.