Downside risks in particular relate to a further intensification of tensions in euro area financial markets and their potential spillover into the real economy. Additional downside risks also relate to the global economy, which may turn out to be weaker than expected, as well as protectionist pressures and the possibility of a disorderly correction of global imbalances.
The budget deficit, as a percentage of GDP at market prices, declined from 5.3 per cent in Financial Year 2005-06 to an estimated 4.3 per cent in FY 2006-07. For the current financial year, it is estimated at 3.8 per cent. I should perhaps also mention here that there is a separation of debt management from monetary management.