Budget 2012: Govt aims for fiscal deficit of 5.1%

Budget 2012: Govt aims for fiscal deficit of 5.1%

Last Updated: Friday, March 16, 2012, 15:47
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Budget 2012: Govt aims for fiscal deficit of 5.1% Zeebiz Bureau

New Delhi: The government on Friday said it aims to bring down the fiscal deficit to 5.1% of the gross domestic product (GDP), at Rs 5,13,590 crore in 2012-13. In 2011-12, the fiscal deficit stood at 5.9% of the GDP, at Rs 5,21,980 crore.

The target was announced by Finance Minister Pranab Mukherjee in Union Budget 2012-13, presented on Friday.

Mukherjee said after taking into account other items of financing, including the net market borrowings through dated securities through finance, the fiscal deficit for FY’11 stands at Rs 4,79,000 crore.

With this the total debt stock at the end of 2012-13 would work out at 45.5% of GDP as compared to the 13th Finance Commission target of 50.5% of GDP. The effective revenue deficit in budget estimates 2012-13 works out to Rs 1,85,752 crore which is 1.8% of GDP.

The minister said the same has been achieved thanks to several measures adopted by the government for fiscal consolidation despite a shortfall in direct tax collections of Rs 32,000 crore and the government absorbing duty reduction in petroleum sector with annual revenue loss of Rs 49,000 crore in 2011-12.

He added that the government spent more to absorb petroleum and fertilizer subsidy in order to insulate people from the rising prices.
First Published: Friday, March 16, 2012, 15:47
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