Fiscal deficit may come in at 6.41 percent

Last Updated: Wednesday, February 3, 2010 - 12:56

New Delhi: A change in the base year used to calculate gross domestic product may help reduce fiscal deficit for 2009-10 to 6.41 percent of GDP, chief statistician Pronab Sen said.
The government in the budget had targeted India`s fiscal deficit at 6.8 percent of GDP in 2009-10.

The widening deficit is a direct result of the government’s decision to surge spending to back up the economy hit hard by the global crisis.
The Reserve Bank of India, which last signalled the end of monetary stimulus by increasing the cash reserve ratio by 75 basis points to 5.75 percent, has expressed concern over the high fiscal deficit.

Bureau Report

First Published: Wednesday, February 3, 2010 - 12:56

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