Friday 30 November 2012

News Hour: Fiscal deficit rises to $67.5 billion; 71.6% of budgeted target

Economists forecast that the FY13 fiscal deficit will overshoot the government target of 5.3%. High current account deficit will continue to impact the rupee.
NEW DELHI: The country's fiscal deficit during the April-October period rose to Rs 3.68 trillion ($67.5 billion), or 71.6 per cent of the budgeted full fiscal year 2012/13 target, government data showed on Friday. 
During the same period in the previous fiscal year, the deficit was 74.4 per cent of the budget target. 
Net tax receipts during the April-October period stood at Rs 3.34 trillion ($61.6 bln) and the total expenditure was about Rs 7.79 trillion. 
The government is aiming to keep the deficit at 5.3 per cent of GDP this fiscal year, a revision to the target of 5.1 per cent in the March 2012 budget. 
Economists forecast that the FY13 fiscal deficit will overshoot the government target of 5.3%. High current account deficit will continue to impact the rupee. 
The Gross Domestic Product (GDP) grew at 5.3% versus 5.5% in the first quarter of the current financial year. An ET Now poll had estimated a growth rate of 5.3%. The consensus estimates of the poll range between 5% to 6%. 
India's economy could gather pace in the new year, putting behind a dismal year, Goldman Sachs said in a report released on Thursday. Goldman Sachs said Indian economy is expected to expand 6.5% in 2013 thanks to an improvement in external demand and pick-up in reforms, and further accelerate to 7.2% in 2014. 
Its upbeat assessment was based on "easing financial conditions, in part driven by some reduction in policy rates, a continuation of reforms boosting confidence, and a normal agricultural crop." 
The investment bank pegged 2012 growth at 5.4% and listed a number of measures to accelerate the economy.

(Source: economictimes.indiatimes.com)

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