Government Reports April-October Fiscal Deficit of 61% of Complete Year Target
Figures released by the Controller General of Accounts have confirmed that India's fiscal deficient hiked to 2.45 Trillion Rupees ($52.75 Billion), or 61% of the complete year target, for the April- October period for the current year, a substantial rise from the deficient of 1.17 Trillion Rupees recorded for the same period last year.
While tax receipts were 2.14 Trillion Rupees, total expenditure was recorded as 5.37 Trillion Rupees for the first 7 months of the 2009-10 financial year.
The India economy's growth, which has been the fastest in the July-September period as compared to the previous 6 quarters, has given the central bank and the Government a reason to withdraw some stimulus measures. Economists and analysts are sure that the current rate of growth will continue, and lead to much better full year growth and earnings than previously expected.
On Monday, official figures confirmed that for the July-September period for the current year, the country's GDP was recorded as 7.9%, a substantial rise from the 6.2% recorded for the previous quarter.
According to Finance Minister Pranab Mukherjee, looking at the current rate of growth, it would be safe to say that India's GDP for the complete fiscal year would go beyond 7%. "I am quite hopeful that if this trend continues, we will have higher GDP growth than anticipated. I hope it will be around 7 percent", Mr Mukherjee was quoted as saying.
