Finance Minister P Chidambaram has said Government is ready to take difficult decisions to check deficit.

He was speaking in an intervention at the IMF Committee plenary meeting at Washington on Saturday. Chidambaram said the government is committed to the path of fiscal consolidation and has drawn red lines for the two deficits (fiscal and current account).

The government proposes to bring down fiscal deficit, an indicator of government borrowing, to 4.8 per cent of the GDP in 2013-14 from 4.9 per cent a year ago.

The Current Account Deficit (CAD), Chidambaram had earlier said that all efforts would be made to contain it at 3.7 per cent of the GDP or USD 70 billion in the current fiscal. The CAD, which is the difference between inflow and outflow of foreign exchange, had touched an all time high of 4.8 per cent of the GDP or USD 88.2 billion a year ago.