Recently, the Kelkar Committee has estimated that GFD/GDP ratio for 2012–13 could slip by 1 percentage point to 6.1 per cent from the budgeted 5.1 per centif corrective measures are not taken.
It has also made several recommendations on fiscal consolidation laying down a path to narrow it down to 5.2 per cent in 2012–13, 4.6 per cent in 2013–14 and 3.9 per cent in 2014–15, when the effective revenue deficit can be brought to zero. Improved tax collection, asset sales, pruning of subsidies and rationalization of planned spending holds the key to this path.