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India’s Apr-Nov fiscal deficit at Rs 4.13 trillion

01 Jan 2013 Evaluate

India’s fiscal deficit during the April-November period was Rs 4.13 trillion, which is 80.4% of the budgeted full fiscal year 2012-13 target. During the same period in the previous fiscal year, the deficit was 85.6% of the budget target. Net tax receipts for April-November stood at Rs 3.7 trillion while total expenditure was about Rs 8.7 trillion.

Earlier in March, the government had budgeted a fiscal deficit of Rs 5.14 trillion, or 5.1% of the gross domestic product (GDP), for the fiscal year ending March 2013. However, in October, it was revised to 5.3%, mainly on the back of subdued revenue collection and rising fuel and food subsidy bills.

Earlier, Finance Minister P Chidambaram while addressing the National Development Council (NDC) meeting said, ‘some tough decisions taken by the government recently may have caused 'immediate pain' but were necessary to bring down fiscal deficit.’ By adding further he said, it was imperative to contain the fiscal deficit by augmenting resources and controlling expenditure.

The government recently, hiked diesel prices by over Rs 5 per litre and capped the number of subsidized LPG cylinders to six per family in a year.

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