The Kelkar Committee focused its prescriptions for fiscal consolidation on three major grounds. First, case study answer financial system is in a state of high fiscal stress, with a do not anything course prone to result in a Central Government fiscal deficit of 6. 1 per cent in 2012 13 this may result from a likely shortfall in gross tax sales of around Rs 60,000 crore and better than budgeted expenditures on subsidies of about Rs 70,000 crore. Second, this fiscal stress is also compounding case study solution problem of dual deficits, with case study solution present account deficit at 4. 2 per cent of GDP last year and probably at 4. 3 per cent of GDP this year, at a time when case study answer global market and capital flows are exceptionally fragile and where financing of this value is creating huge risks for macroeconomic and external balance.