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INDIA BUSINESS WORLD - October 1st October 15th 2008
APR-AUG FISCAL DEFICIT AT RS 1,16,890 CRORE
The country's fiscal deficit was Rs 1,16,890 crore ($25 billion), or 87.7% of the full-year target of Rs 1,33,287 crore, in the first five months of 2008-09 as revenue growth slowed. Total expenditure in April-August was Rs 2,79,604 crore, while receipts were Rs 1,62,714 crore, the government said. Tax collections slowed as rising interest rates and a global slowdown weighed on industrial production. "Fiscal deficit looks huge. It is difficult to discern a systematic trend from monthly fiscal deficit numbers. Overall, the pressure will remain in the rest of the year on fiscal balances," said Shubhada Rao, chief economist at Yes Bank. The government plans to cut the deficit to 2.5% of gross domestic product (GDP) in 2008-09 from 2.8% in 2007-08.
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