Thursday, January 1, 2009

Fiscal deficit up 83% yoy as fertiliser subsidies shoot up

The fiscal deficit has shot up by 83% yoy or up to 132% of the budgeted estimates
for year till November 2008. The sharp increase in the fiscal deficit is likely driven by

(1) Rs310bn additional outlay on fertiliser subsidies;
(2) slow down in tax revenues as dipped by 15.5% yoy for November 2008 and
(3) likely faster spending by the ministries/departments with a view on probable general election in April 2008.


The tax revenues have declined by 15.5% yoy for the month driven by a sharp dip of
29.9% in the corporate tax revenues. While the budgeted estimates expect the fiscal
deficit at 2.5% of GDP, revenue deficit at 1.0% of GDP and primary surplus at.1.1%
of the GDP, under current scenario the revised estimates are likely to be deficit of
3.3%, 2.5% and 1.1% respectively. However, with inclusion of additional Rs310bn of
fertiliser subsidies in the budget provisions and sharp fall in crude prices the off
budget deficit is likely to be contained to 3.9% of the GDP.

No comments:

Blog Archive

Promote Your Blog

Life Insurance | Health Insurance | Auto Insurance


Investors Please Listen !

 
More than 100 kinds of Insurance products from more than
20 companies under one roof.



Call: 9818269396 
investorspleaselisten@in.com
www.investorspleaselisten.blogspot.com

 

 

Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest