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Monday, September 20, 2010

Fiscal Deficit for 2010-11

Finance minister Pranab Mukherjee today presented a budget with a fiscal deficit of 5.5% of the gross domestic product (GDP).

He pegged the total expenditure at Rs11.09 lakh crore while the total tax and non-tax revenue was estimated at Rs6.82 lakh crore for the year 2010-11.

The deficit is much lower than the budgeted estimate for the current fiscal (6.8%), which, however, has been revised to 6.9%.

To meet the shortfall, the government has estimated borrowing of Rs3.81 lakh crore for fiscal 2010-11, lower than the current fiscal's Rs4.01 lakh crore.

"I am happy to report that against a fiscal deficit of 7.8% in 2008-09, inclusive of oil and fertiliser bonds, the comparable fiscal deficit is 6.9% as per the revised estimates for 2009-10," Mukherjee said.

The rolling targets for the fiscal deficit are pegged at 4.8% and 4.1% for 2011-12 and 2012-13, respectively, he said.

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