Correct Option: C

In his Budget presentation for 2011-12, Mukherjee had proposed to reduce the fiscal deficit to 4.6 per cent in the next fiscal. He had exuded confidence that the fiscal deficit target of 4.6 per cent of the GDP for 2011-12 would be achieved. The fiscal deficit for 2011-12 was projected at Rs 4,13,000 crore, which was to be financed by market borrowings via the issue of dated securities estimated at Rs 3,43,000 crore (83% of deficit) and the issue of treasury bills estimated at Rs 15,000 crore (3.5% of the deficit). Note : Deficits occur when a government’s expenditures exceed the revenue that it generates. Finance minister Arun Jaitley pegs fiscal deficit at 3.2% of GDP for 2017-18.