India’s Fiscal Deficit comforted to 5.7% of GDP in the fiscal 2011-12

As per the estimates issued by CAG on May 31, 2012, the Fiscal Deficit (FD – the difference between the government’s total receipts and expenditure) of India relieved to 5.7% of GDP, lower than 5.9% anticipated in the revised estimates in the Budget 2012.

• Fiscal Deficit: Rs 5.09 trillion rupees.
• Tax revenue receipts: Rs 6.31 trillion (against the projected figure of Rs 6.42 trillion)
• Govt’s non-plan expenditure: went down at Rs 8.84 trillion.
• Govt’s plan expenditure: went down at Rs 8.84 trillion Rs 4.13 trillion.
• Revenue deficit: 4.3% of GDP.

Now, what the Govt is aims at for the fiscal 2012-13?

• The government is putting toil to cut short the widening Fiscal Deficit and targeting to bring it down to 5.1% in the fiscal year 2012-13. For meeting this aim, the finance ministry is looking forward to cut the subsidy bill to below 2% of GDP in the fiscal year 2012-13and 1.75% in the subsequent years.

Actually, the slow-down in the Economy is making it hard for the government to accomplish its fiscal deficit aim.

Month: Current Affairs - June, 2012