Finance Minister Pranab Mukherjee said that the fiscal deficit will descend to 5.5% by the coming financial from the projected 6.8% in the existing fiscal.

Mr. Mukherjee stated that the fiscal deficit would fall further in 2011-12.

The deficit in the next fiscal would be 5.5 percent that would figure out to Rs 381,408 crore and the administration would have to borrow approximately Rs 3.45 lakh crore to fund disbursals.

In 2011-12, the fiscal deficit will be 4.8%, and further drop down to 4.1% in 2012-13.

He said, "The fiscal deficit targets are according to those set by the 13th Finance Commission."

Fiscal deficit, an indication of administration borrowings, is figured to hit 6.87% in the subsisting fiscal, up from 6.2% earlier, mainly because of the stimulus measures of Rs 186 lakh crore provided during December 2008 and January 2009. (With Input from Agencies)