LDALL IMF 2LST

India's fiscal deficit targets went awry after the
government gave a stimulus to insulate the economy from the
impact of the global financial crisis.
The country's fiscal deficit more than doubled to over 6
per cent in 2008-09, as against the 3 per cent limit
stipulated by the Fiscal Responsibility and Budget Management
Act.
The following year, the fiscal deficit crossed 6.5 per
cent. After a partial roll-back of the stimulus, the
government now expects the deficit to come down to 5.5 per
cent this fiscal.
Lauding India's approach on capital inflows as the right
one, Strauss-Kahn said it will stimulate investment in
infrastructure, which requires a whopping USD 1 trillion in
the 12th Five-Year Plan (2012-2017).
"So in my view, the Indian approach (on capital inflow)
is the right one... so the capital inflows may prove even more
useful (for infrastructure development)," Strauss-Kahn said.
Amid reports that Ahluwalia may be among probables to
head the IMF, he said, "Let us be candid. I think the so-
called agreement between the US and Europe, whereby the IMF
head was European and World Bank President was an American, is
over.
"So I think it would be just fair that the next leaders
of the two institutions will come from somewhere else in the
world," he said.
The IMF Chief termed the debt problem in Ireland as
serious, but exuded confidence that it would be fixed after
European governments agreed on a plan to bailout the country.
He also said though IMF did not forecast a double-dip
recession, the possibility cannot be ruled out completely.
Strauss-Kahn, who has served as France's Minister of
Economy, Finance and Industry, did not give direct reply to a
question on whether he would contest the next presidential
poll in France.
However, the IMF chief did mention that he does not give
much significance to opinion polls, which have shown that
Strauss-Kahn is more popular than incumbent French President
Nicholas Sarkozy, who is facing social and political unrest
over his pension reforms. PTI