Click to play videoNew Delhi: Union Finance Minister P Chidambaram has admitted that the global economic pressure will negatively impact the fiscal and revenue deficit by taking them higher.
"While according to the budget estimates we had promised that we will bring down the fiscal deficit below three per cent and also the revenue deficit. But thanks to the global pressure it is perhaps likely that we may overshoot the budget estimates," Chidambaram said.
"If our (fiscal) deficit settles, say not at three per cent...if it settles at 3.3 per cent or 3.2 per cent, so what? This is not a year to worry about 0.2 or 0.3 per cent deficit over the target," the Finance Minister said.
Meanwhile, Prime Minister Manmohan Singh has said that while the short-term outlook on the Indian economy was cloudy he is confident that economy can sustain its growth momentum in medium-term.
"We have taken several measures in India in the last few weeks to ensure adequate liquidity and confidence in our financial system. The fundamentals of Indian economy have been and continue to be strong," Manmohan said.
ICICI Bank MD and CEO KV Kamath, too, expected further steps from the Reserve Bank of India to ease liquidity in the system.
"There will be some more steps in terms of interest cut. Already we have seen one step. I think we will see some more steps on the interest rate front," Kamath hoped.
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