NDA in denial mode, says Chidambaram 
Economy

Fiscal figures fudged, says Chidambaram

Accusing the Economic Affairs Secretary, Subhash Chandra Garg, of ‘fudging figures’, the former Finance Minister, P Chidambaram, has said the fiscal deficit in FY14 was 4.4 percent and not 5.1 percent, as quoted by the Finance Ministry official.

On Friday, Garg had said in a tweet that the government’s 'fiscal math is completely on track' and 'there is no proposal to ask RBI for Rs 3.6 lakh crore.'

'How did the Secretary say that fiscal deficit in 2013-14 was 5.1 per cent? Official data says it was 4.4 per cent,' Chidambaram tweeted. 'Fudging figures in a debate is neither good governance nor good manners!'

Garg had also said, 'Government’s FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone Rs. 70,000 crore of budgeted market borrowing this year.'

He had also said that the only proposal under discussion is to put in place appropriate economic capital framework of the RBI. Keeping confidence in the government’s fiscal math, Garg had said, it will stick to the fiscal deficit target of 3.3 percent for the current financial year ending March 31, 2019.

Meanwhile Chidambaram warned the NDA government against laying its hands on RBI reserves, saying it will have 'catastrophic' economic consequences for the country.