Prime Minister's Economic Advisor Council chairman Dr C Rangarajan has said that the government expects the current account to be at 3.5 per cent of the GDP, which is much higher than expected.

Rangarajan said that there is a need to bring down the current account deficit to moderate levels. He said that the country's economy was going through a difficult phase and there is a requirement to reduce the current account deficit to boost economy growth.

"The current account deficit is remaining at high level and we should work towards getting the current account deficit to more moderate levels. We should aim at the current account deficit of 2.5% of the GDP down from the current 4.5%. But in the current year, perhaps, the current account deficit may be around 3.5% of the GDP," he said.

He said that besides addressing the issue of the current account deficit, the government is also required to address the issue of controlling the inflation and fiscal deficit. He said there was a need to address some major macro-economic concerns.

He said that the Finance minister P Chidambaram has charted out way forward for the country to consolidate its fiscal position and the government should stay on that plan.