New Delhi: The government Thursday said fiscal deficit -- gap between expenditure and revenue -- could overshoot the Budget target and touch 5.3 percent of the GDP this financial year.
"I dont think we will be able to contain fiscal deficit to our Budget plan of 5.1 percent (of GDP). It could be 5.2 to 5.3 percent, which is doable," Department of Economic Affairs Secretary Arvind Mayaram told reporters here.
The government in its 2012-13 Budget had estimated the country's economic growth in the range of 7.6 percent and fiscal deficit at 5.1 percent.
In the first four months of 2012-13, fiscal deficit has already crossed 50 percent of Budget Estimate of Rs 5.13 lakh crore, or 5.1 percent of GDP.
According to the Prime Minister's Economic Advisory Council (PMEAC), India's Gross Domestic Product (GDP) is likely to be 6.7 percent this fiscal given the economic slowdown.
The Finance Ministry had recently assured the industry that it would soon come out with steps to contain fiscal deficit.
Besides other reasons, subsidy outgo on petroleum products is putting pressure on the government finances.
While the government recently hiked diesel prices and decided to cap the supply of subsidised LPG cylinders to domestic consumers, high crude oil prices in the international markets continue to remain a concern.
To a related query, Mayaram said, "I don't know what the movement will be of petroleum prices".
The international crude oil price for Indian Basket was USD 108.03/barrel (bbl) yesterday, calculated by a wing of Oil Ministry.
First Published: Thursday, September 27, 2012, 18:07