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Government will meet fiscal deficit target in current fiscal: Arvind Mayaram

01 Nov 2013 Evaluate

Amid rising concerns over the fiscal deficit number touching around 76 percent of the budget estimate in the first half of current fiscal, Economic Affairs Secretary Arvind Mayaram said that the government will meet the fiscal deficit target of 4.8 percent of GDP for the current financial year. During the first six month of current fiscal, fiscal deficit of the country has touched Rs 4.12 lakh crore, or 76 percent of the budget estimate of Rs 5.42 lakh crore. Net tax receipts of the country touched Rs 3.08 trillion in the first half of the current fiscal year, while, the total expenditure stood at Rs 8.09 trillion during the reported period.

Meanwhile, the government has been taking a number of measures in order to contain the country's fiscal deficit within target limit. Recently, it has announced a slew of austerity measures including banning government departments for holding meetings in 5-star hotels among others to cut government spending in non-critical areas. In the previous fiscal, the government was able to contain the fiscal deficit at 4.9 percent of GDP in FY13, against the budgeted target of 5.1 percent of GDP mainly on the back of austerity measures announced in November 2012.

Further in order to enhance the government revenue, the government has sought higher dividend payments from state-owned companies in sectors such as steel, coal, mines and power. Moreover, the finance ministry has recently said that the government is committed to the path of fiscal consolidation and will take difficult decisions soon to check country’s widening fiscal deficit.

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