PM worried about fiscal deficit

Expressing serious concern about the country's financial health, Prime Minister Manmohan Singh on Thursday warned that economic progress could be hindered if the mounting fiscal deficit of 9 to 10 per cent of the national income was not contained.

"I feel concerned about the financial health of the country. The collective fiscal deficit of the centre and states is 9 to 10 per cent of our national income," he said after launching the LIC 'Bima Gold' policy in Lucknow.

Fiscal deficit up at Rs 77,480 crore

If the deficit was not contained, "the economic progress of the country could be impaired," the PM said and asked the state governments to discharge their obligations in this regard as also strive to improve education and health services.

He also worried about the mounting losses in some state electricity boards, which could trigger an economic crisis and asked all political parties to think of ways and means to meet the rising power demand of the nation.

"The electricity boards in some states are not working properly. Every year there is a loss of Rs 25,000 to 30,000 crore (Rs 250 to Rs 300 billion).  Power has not reached the rural areas and the farmers are not able to make full use of it," the PM said.