GDP growth rate projected at 7.5% to 8% for 2012-13

The Prime Minister's Economic Advisory Council (PMEAC) Chairman, C Rangarajan says that the council estimates GDP for 2012-2013 to be around 7.5% to 8%.

Speaking while unveiling estimates, C Rangarajan, Chairman of PMEAC said the GDP growth for 2011-12, would be 7.1% , a shade higher than the 6.9% estimated by the Central Statistical Organisation.

The PMEAC Report has pegged the current account deficit at 3.6% of GDP for 2011-12 and 3% of GDP for 2012-13. “Efforts to contain the deficit is necessary,” he stated.

Speaking on fiscal deficit, Rangarajan, said it was a matter of concern, adding that the government was unlikely to contain the deficit as estimated in the Union Budget for 2011-2012. “Revenues are not growing as estimated in the budget. On the other hand, expenditure under subsidies are growing,” he stated.

The twin deficits of current account and fiscal deficit have been a matter of serious concern for the government along with rising inflation. The fiscal deficit which was estimated at 4.6 % of GDP is unlikely to be met, with analysts estimating that it could overshoot by at least 1%.

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