The Hindu Business Line : Fiscal deficit soars in Apr-Dec 2008

New Delhi, Feb. 2 The slowdown in the economy, coupled with higher outgo on account of stimulus package measures, has pushed the fiscal deficit during April-December 2008 to Rs 2,18,262 crore.

Besides, the fiscal deficit has also been impacted by the agri-debt waiver and other expenses under various social welfare schemes, such as the National Rural Employment Guarantee (NREG) programme.

The fiscal deficit of Rs 2,18,262 crore represents 163.8 per cent of the full-year target compared with 51.4 per cent at the same stage in the previous year. The fiscal deficit up to November-end this fiscal stood at about Rs 1,77,000 crore.

Revenue deficit up

Revenue deficit during April-December 2008 has shot up to Rs 1,73,830 crore, which is 315 per cent of the budget estimate of Rs 55,184 crore for 2008-09, the latest data released by the Controller General of Accounts (CGA) showed.

To minimise the impact of the global financial turmoil on the Indian economy, the Government has already come up with two stimulus packages in recent months. India has pledged to spend an extra Rs 1,47,000 crore during this financial year.

With the economy slowing down, revenue collection growth rates are understood to have taken a hit and raised concerns as to whether the Centre would be able to meet its budget estimates for the current fiscal or not.

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