The country’s fiscal deficit, the sum difference between revenues earned and money spent in a year, may be lower than what the government had originally estimated during last year’s budget. CNBC-TV18's Siddharth Zarabi reports.
In Budget 2009, Finance Minister Pranab Mukherjee had projected the deficit for fiscal year 2009-10 to stand at 6.8% of the nation’s gross domestic product (GDP).
However, the revised fiscal deficit for the year may be at around 6.1% to 6.3% of the GDP. The government is likely to project fiscal deficit for fiscal year 2010-11 at around 5.5%.
Among the factors that may have contributed to expected lowering of deficit is the government’s focus on disinvestment and an improvement in tax and non-tax revenue.
During the budget last year, the finance minister had estimated revenues coming from divestment — or government stake sales in public sector companies — at Rs 1,120 crore. However, divestment is now projected to have yielded about Rs 35,000–Rs 40,000 crore during the fiscal year.
The government has completed stake sales in NHPC and Oil India, which got listed on the stock markets this financial year, while more stake sales are expected to take place for companies like NMDC, NTPC and Satluj Jal Vidyut Nigam.
Source: CNBC-TV18Courtesy moneycontrol.com
Also check
Posts
No comments:
Post a Comment