Stimulus effect: Fisc deficit up at Rs 1.97 lakh cr till Sept
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Last Updated: Friday, October 30, 2009, 20:39
  
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


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