145;Fiscal gap won146;t block stimulus package146;

With Parliament slated to discuss the financial crisis next week...

With Parliament slated to discuss the financial crisis next week, the Government made it clear on Friday that it is not going to be deterred by the fiscal deficit limits under the Fiscal Responsibility and Budget Management FRBM Act to stimulate the economy against the grim economic outlook.

In fact, the assurance came from Home Minister P Chidambaram, who, as Finance Minister, had budgeted the fiscal deficit for the current fiscal at 2.5 per cent. Chidambaram was replying to supplementary questions on Finance, as he had been asked to assist the Prime Minister in parliamentary work relating to Finance Ministry.

8220;It is not a cause for concern if fiscal deficit crosses three per cent of the GDP. We had brought down the fiscal deficit to 2.5 per cent from 4.5 per cent,8221; Chidambaram made it clear in the Lok Sabha.

However, Chidambaram ruled out amending the FRBM Act, as suggested by CPIM leader Rup Chand Pal, citing its importance in bringing financial discipline on Government expenditure. 8220;This amending FRBM Act to relax it is not a wise suggestion. The FRBM Act has brought about a great deal of discipline in Government expenditure,8221; said Chidamb-aram, while adding, 8220;We have to stimulate the economy as this is not the year to worry too much about the fiscal gaps.8221; In this context, Chidambaram assured that the Government would inform Parliament if the FRBM targets are breached while trying to stimulate the economy through increased public expenditure.

Earlier, as the House assembled, the Lok Sabha paid tributes to the martyrs who foiled the December 13, 2001 terrorist attack on Parliament. Recalling the supreme sacrifice by the security personnel, Lok Sabha MPs observed silence as a mark of respect to the departed souls.

After Question Hour, Samajwadi Party leader Ramjilal Suman demanded a higher cut in the fuel prices. 8220;The reduction in fuel prices announced by the Government is very minimal in the wake of huge drop in the international crude oil prices. The Government must bring down the prices of diesel, at least by Rs 10 a litre,8221; demanded Suman, who was supported by MPs from Left parties and Opposition benches. However, the Government did not respond to this demand.