Divestment can check deficit, says PM panel

“If they (government) manage to tap new sources of revenue, I don’t think there should be any problem on fiscal deficit ... new sources of revenues like the sale of 3G spectrum (and) disinvestment,” he told reporters on the sidelines of a function organised by the Competition Commission of India.

The auction of 3G spectrum is expected to yield Rs 25,000 to Rs 40,000 crore to the exchequer.

As regards offloading of government’s stake in public sector enterprises, Tendulkar said, “the prospects are good for disinvestment.”

Tendulkar said the government should repriortise expenditure with a focus on productive sectors in order to spur growth. Replying questions on inflation, which fell to 0.13 per cent for the week ended May 20, the he said though it has declined “there is no possibility of deflation in the country.”