India's fiscal defecit is among the highest

As if a burgeoning current account deficit was not enough, India has been struggling to reduce its fiscal deficit as well. And when compared to its peers in this regard, it hardly fares well. Today's chart of the day shows that India is almost on par with the US when the deficit is calculated as a percentage of the Economist's GDP estimate for 2013. The Finance Minister, in his Union Budget speeches, has been highlighting the importance of bringing this under control and has even laid a roadmap for the same. But as of now, the government is finding sticking to the targets quite difficult. Many of the solutions proposed have been more short term in nature. A longer term solution that will

 address many of India's structural problems will be much more meaningful we believe. 

 

Data Source: The Economist