Indian millionaires can wipe out fiscal deficit

India can easily get rid of its entire fiscal deficit estimated at about $33 billion, if over one lakh millionaires in the country decide to give away at least one-third from the huge wealth accumulated by them.

According to the World Wealth Report released by global investment banking giant Merrill Lynch and consultancy major Capgemini, the number of individuals with at least one million dollars in net assets has increased to 1,00,015 in India.

This puts their collective wealth at a minimum of $100 billion. Interestingly, this is nearly three times India's fiscal deficit, which was put at about Rs 1,51,000 crore ($33 billion) in this fiscal's union budget announced by Finance Minister P Chidambaram in February.

The fiscal deficit stands at 3.3 per cent of the GDP, which touched one trillion dollars in the revised estimates released in May this year.

The wealth report cited the country's strong economic growth and gains in stock markets as the key reasons for the 20.5 per cent rise in millionaire population in 2006. This was second only after 21.2 per cent growth in Singapore.

The possibility of Indian millionaires helping wipe out the fiscal deficit may be far-fetched, but rich people in Asia-Pacific region lead the chart of region when it comes to contribution to philanthropic causes.

As many as 26 per cent millionaires in Asia-Pacific pledged some amount for charitable purposes, as against 13-14 per cent in North America and 6-7 per cent in Europe and Middle-East. Globally, 11 per cent of the rich people devoted more than 7 per cent of their wealth for philanthropic causes.