Piling fiscal deficit worries me: Jaswant Singh

Replying to the three-day discussion on the Budget in the Rajya Sabha, Finance Minister Jaswant Singh said that the country’s debt burd...

Replying to the three-day discussion on the Budget in the Rajya Sabha, Finance Minister Jaswant Singh said that the country’s debt burden was unsustainable— debt servicing accounted for 50 per cent of the total revenue, 20 per cent on subsidy, 25 per cent on defence.

‘‘What am I left with?’’ he pleaded. ‘‘This is a serious issue and all parties should ponder over it,’’ he said. He blamed the severe drought, global slowdown, the sustained war on terror with Pakistan, situation in the Gulf and its corresponding effect on oil prices as the main reasons for the huge fiscal deficit piling up.

Jaswant Singh said his Budget had come out with a major debt swap through which high cost debt of states would be replaced by low cost debts resulting in saving of Rs 81,305 crore over a three-year period.

He, however, agreed there was acceleration in the inflation rate since early September mainly due to drought and the uncertainty in the Gulf. While admitting the country’s fiscal deficit was a ‘‘major source of worry,’’ he said pegging it at 5.6 per cent of the GDP for the coming year was not ‘‘unsatisfactory’’ given the adverse circumstances.