The government is more concerned about the stability of the economy and has taken various measures to reduce the impact of the global economic slowdown on the country and the current fiscal deficit is no cause for concern, home minister P Chidambaram said.

''If fiscal deficit crosses 3 per cent of GDP, it is not a cause for concern. We had brought down the fiscal deficit to 2.5 per cent from 4.5 per cent,'' he told members of Parliament.

Chidambaram, who is also assisting the prime minister Manmohan Singh, who is also holding the finance portfolio, said economic stability was the main priority of the government and the recently announced booster package would help to mitigate some of the impact of the global economic slowdown on the Indian economy.

Chidambaram also pointed out that India's external debt is also the lowest among the world's 57 biggest economies, including that of the US and Britain.

He said the external debt in proportion to the gross domestic product (GDP) is 18.9 per cent. It is the lowest among other large economies.

Answering a suggestion by CPI(M) member Rupchand Pal that the government amend the fiscal responsibility law to combat the economic slowdown, Chidambaram said, ''If we breach the FRBM targets, we will report to Parliament. I don't think the Act needs amendments. It is not a wise suggestion to amend FRBM law.''