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.