NEW DELHI: The fiscal deficit is expected to overshoot the Budget target and touch 5.3 per cent of the gross domestic product (GDP) during this fiscal. Fiscal deficit is the gap between expenditure and revenue.
“I dont think we will be able to contain fiscal deficit to our Budget plan of 5.1% (of GDP). It could be 5.2 to 5.3%, which is doable," Department of Economic Affairs Secretary Arvind Mayaram said.
In its 2012-13 Budget, the government had pegged the country's economic growth in the range of 7.6 per cent and fiscal deficit at 5.1 per cent.
During the initial four months of 2012-13, fiscal deficit has already crossed 50 per cent of Budget Estimate of Rs 5.13 lakh crore, or 5.1 per cent of GDP.
As per the Prime Minister's Economic Advisory Council (PMEAC), India's GDP is expected to be 6.7 per cent this fiscal given the economic slowdown.
Recently, the Finance Ministry had assured the industry of coming up with measures to contain fiscal deficit.
However, the the government recently increased diesel prices and decided to cap the supply of subsidised LPG cylinders to domestic consumers, high crude oil prices in the international markets continue to remain a concern.