Finance Minister P Chidambaram today exuded confidence that country's current account deficit will be contained below 60 billion dollar this financial year as against an earlier estimate of 70 billion dollars. Talking to a private TV channel, Mr. Chidambarm said inflation is a problem and food items like grains, fruit and vegetables are driving it. He said, the government will contain the fiscal deficit below the budgeted number of 4.8 percent of GDP.

On impact of the US Federal Reserve's gradual stimulus withdrawal, Mr. Chidambaram said the tapering will happen, but both the markets as well as the government are prepared to deal with it.