New Delhi: The government's fiscal deficit rose 92 percent to Rs 1.97 lakh crore in six months ending September mainly on account of higher spending and revenue sacrifices made to prop up the economy.
However, the government was aware of the increase in
fiscal deficit this fiscal and projected it to rise to 6.8 percent of GDP this fiscal. As such, for the first half, fiscal
deficit was 49.3 percent of the estimates for the entire
2009-10.
The Centre's revenues stood at Rs 2.51 lakh crore, and
expenditure ballooned to Rs 4.48 lakh crore during the first
half of this fiscal, leading to a rise in fiscal deficit.
The Government had announced tax cuts only since December
last, so fiscal deficit till September was way down. It was
only after December that fiscal deficit started rising
alarmingly and touched 6.2 percent of GDP last fiscal from
the budgeted estimates of 2.5 percent.
Besides, it stepped up expenditure to give boost to the
economy. Expenditure this fiscal is pegged at over Rs 10 lakh
crore for the first time in Indian history.
Even as the first six months have passed, direct and
indirect taxes fetched only 39.2 percent of the estimates for
the entire fiscal.
Tax revenues are expected to rise more in the latter part
of the fiscal, as the economy recovers.
Bureau Report
First Published: Friday, October 30, 2009, 20:39