Fiscal deficit stands at 71.6% of Budget estimates at Oct-end
The slight improvement in fiscal deficit position is mainly on account of some tightening on the expenditure front.
In absolute terms, the fiscal deficit -- gap between expenditure and revenue collection -- was Rs 3.67 lakh crore during April-October period of the current fiscal.
Meanwhile, the government has raised the fiscal deficit target for the current fiscal to 5.3 per cent from the Budget Estimates of 5.1 per cent of the GDP.
The fiscal deficit was 5.8 per cent of GDP in 2011-12.
The high fuel, fertiliser and food subsidy outgo is one of the major reasons for the ballooning fiscal deficit.
Replying to a question in the Lok Sabha, Finance Minister P Chidambaram today said the government has imposed measures like rationalisation of expenditure and optimisation of available resources with a view to improve fiscal deficit condition in the current year.
This includes 10 per cent mandatory cut on non-plan expenditure in the current year, ban on holding of meetings and conferences at five star hotels, ban on creation of plan and non-plan posts and restrictions on foreign travel, he said.
The government also endeavours to restrict the expenditure on central subsidies, he added.
The above steps and measures are expected to reduce the government expenditure under the designated items of expenditure except under the obligatory
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