New Delhi: Finance Minister Pranab Mukherjee on Monday said the government cannot indulge in “reckless borrowing” and did not have Parliamentary mandate to tweak taxes.
“I can’t indulge in reckless borrowing...,” he said after presenting the interim budget for FY’10 in Parliament.
The government has pegged fiscal deficit at 5.5% of Gross Domestic Product for the next financial year, against the revised figure of 6% in the current financial year.
The fiscal deficit target for the current fiscal was 2.5%.
However, fiscal measures initiated in the wake of the global economic downturn and reduction in revenue collection have impacted resource mobilisation resulting in widening of deficit.
Analysts too fear that returning to an era of high fiscal deficit could push the country into the vicious cycle of high inflation.