3G revenue will help in reduction of fiscal deficit: Pranab Mukherjee

Finance minister Pranab Mukherjee today said revenues from 3G spectrum auction would help in reducing the fiscal deficit.

"Of course it (3G revenue) will provide me an elbow room. Please allow me to use it in the best possible manner," he said after inaugurating the Centralised Processing Centre (CPC) set up in the city for processing IT returns.

The government earned Rs 67,719 crore from sale of 3G spectrum recently. At present, the government is auctioning
Broadband Wireless Access spectrum and at today's price, it is
expected to fetch a revenue of Rs 18,759 crore from sale of
three slots of BWA radio waves.

The Centre, earlier, had estimated a revenue of Rs 35,000 crore from sale of 3G and BWA spectrum together.

Mukherjee stressed that the country should come back to the path of fiscal consolidation as soon as possible. 

"That is why you must have noticed in my budget proposal that I have improved even my recommendation and roadmap that the 13th Finance Commission had given with respect to fiscal deficit," he said.

However, he exuded optimism saying, "I do hope that I will be able to contain the fiscal deficit within the target that I have made in the budget proposal".

He announced setting up of two more CPCs in Pune and Maneshar in Haryana.