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It's official that government will not induce money into unproductive sectors in a bid to consolidate the fiscal deficit which will touch 6.8% of Gross Domestic Product(GDP) for this financial year finance minister Pranab Mukherjee said today.
India's fiscal deficit is projected to swell to a record 6.8 percent of gross domestic product in the fiscal year 2009/10 (April-March) that has to be funded by a record high borrowing of 4.51 trillion rupees ($95 billion). that's a whopping amount of borrowing.
A report from finance ministery said that - "Government will continue to take necessary measures to moderate inflation, prune unproductive expenditure and closely monitor FRBM (Fiscal Responsibility and Budget Management) targets," so lets see whether these statements turn to reality or it's just an answer to opposition questions in parliament.
Tuesday, August 4, 2009
Finance Minister speaks about Fiscal Consolidation
Tuesday, July 7, 2009
Govt of India awaits more then half of fiscal deficit from disputes
Believe it or not the government is yet to receive over Rs one trillion in taxes from corporate and other entities and add to it other arrears worth about Rs 47,000 crore, the total outstanding equals more than half of the total revenue deficit this year.
Also read
Budget 2009-10 highlights
At about Rs 150,000 crore, the unrealised tax and non-tax revenue is 53 per cent of the total revenue deficit of over Rs 282,000 crore projected by Finance Minister Pranab Mukherjee in his Budget for 2009-10.
The arrears outstanding at the end of reporting year 2007 -08 pertain to a period of up to ten years or more and also include interests from state governments and PSUs.
In totality, the arrears that the government is still awaiting are held up in litigation, or are due for some other reasons. If realised, they could have substantially reduced the Centre's borrowings, pegged at over Rs 4,00,000 crore for the current fiscal.
Bulk of the tax arrears is caught under disputes and amounts to over Rs 64,000 crore, while the amounts not under dispute total at about Rs 40,000 crore also include cases pending for adjudication.
