Finance Minister Pranab Mukherjee on Friday pegged the fiscal deficit for 2010-11 at 5.5 per cent of the gross domestic product.

The fiscal deficit, which is the difference between total expenditure and revenue, as percentage of GDP will come down from 6.9 per cent in the revised estimates for the current fiscal, he said unveiling the 2010-11 Budget in the Lok Sabha.

The market borrowings for the next fiscal has been pegged at Rs 3.45 lakh crore (Rs 3.45 trillion), he said, adding the schedule of borrowing will be decided in consultation with the Reserve Bank of India.