Technoglitch
Core Member
The government’s fiscal deficit for the first nine months (April-December) of this financial year stood at 88 per cent of the annual target comparable with 100.2 per cent of the target it managed during the same period in the previous financial year.
The April-December fiscal deficit — the difference between government revenue and expenditure — stood at Rs.4.88 lakh crore, which is 88 per cent of the Rs.5.55 lakh crore target for the full year set by Finance Minister Arun Jaitley in the Budget. It amounts to 3.9 per cent of the GDP, a target that many industry leaders want to be pushed back in favour of increased public expenditure. They said it will boost domestic demand.
Several economists argue that it is important to stick to the fiscal deficit target since government accounts already fail to show the correct picture.
“The government has Rs.70,000 crore of unpaid bills to the Food Corporation of India due to the food subsidy, and a similar amount of unpaid bills due to the fertiliser subsidy that haven’t been shown in the Budget. This omission makes the fiscal deficit number look better than it is. It is important that the government sticks to the fiscal deficit target because the real number is likely higher than what is being shown,” Ashok Gulati, Infosys Chair Professor at the Indian Council for Research on International Economic Relations told The Hindu.
Fiscal deficit at 88% of annual target - BUSINESS - The Hindu
The April-December fiscal deficit — the difference between government revenue and expenditure — stood at Rs.4.88 lakh crore, which is 88 per cent of the Rs.5.55 lakh crore target for the full year set by Finance Minister Arun Jaitley in the Budget. It amounts to 3.9 per cent of the GDP, a target that many industry leaders want to be pushed back in favour of increased public expenditure. They said it will boost domestic demand.
Several economists argue that it is important to stick to the fiscal deficit target since government accounts already fail to show the correct picture.
“The government has Rs.70,000 crore of unpaid bills to the Food Corporation of India due to the food subsidy, and a similar amount of unpaid bills due to the fertiliser subsidy that haven’t been shown in the Budget. This omission makes the fiscal deficit number look better than it is. It is important that the government sticks to the fiscal deficit target because the real number is likely higher than what is being shown,” Ashok Gulati, Infosys Chair Professor at the Indian Council for Research on International Economic Relations told The Hindu.
Fiscal deficit at 88% of annual target - BUSINESS - The Hindu
