How could the percentage of fiscal deficit have come down?
“I have spent more, yet, I have brought down the fiscal deficit for 2010-11 from 5.5 per cent to 5.1 per cent,” claims Finance Minister Pranab Mukherjee. The amount of fiscal deficit has actually gone up by Rs.20,000 crore. How then could the percentage of fiscal deficit have come down? It defies the logic of numbers. Yet, none of the commentators in awe of his miracle have asked Mr. Mukherjee how he achieved the miracle. It is not his feat. Runaway inflation did the trick, not the Finance Minister. Surprised? Read on.