India's fiscal deficit rises to 6.61 per cent of GDP
01 Jun 2010
India's fiscal deficit has widened to Rs4,12,307 crore and now forms 6.61 per cent of the country's gross national product (GDP) of Rs62,31,171 crore, against 6.1 per cent a year ago.
However, the figure is lower than the 6.7 per cent envisaged in the revised budget estimates for the year 2010-11, as the GDP then was estimated at a lower level of Rs61,64,178 crore.
The centre's fiscal deficit rose above 6 per cent in 2008-09 in the wake of the stimulus action following the global economic slowdown.
Government announced various incentives, including tax cuts and public spending, in order to rev up the economy, thereby increasing the already bulging deficit.
The government expects to limit fiscal deficit in the current year at 5.5 per cent of GDP with a partial withdrawal of the stimulus measures and through cuts in subsidies.
The government's fiscal deficit stood at Rs3,30,114 crore during 2008-09.