Press Trust of India / New Delhi Feb 08, 2012, 21:35 IST
Faced with subdued revenue mop-up and rising fiscal deficit, Finance Minister Pranab Mukherjee today said he is "losing sleep" over mounting subsidy bill, which may cross Budget estimate by Rs 1 lakh crore in 2011-12.
"As Finance Minister when I think of enormity of the subsidies to be provided, I lose my sleep. There is no doubt," said Mukherjee, who is engaged in the process of firming the Budget for 2012-13 to be tabled in the Lok Sabha on March 16.
The government had earlier said that its subsidy bill is likely to increase by over Rs 1 lakh crore, over and above the original estimate of Rs 1.34 lakh crore, mainly on account of higher outlay towards fertiliser, food and oil.
In view of the moderate growth in revenue collection and poor receipts from disinvestment on one hand and the rising subsidy on the other, the Finance Minister will have a tough time in balancing the budget figures.
The fiscal deficit, which he had proposed to bring down from 4.7% to 4.6% of GDP in 2011-12, is expected to in the range of 5.6%.
Latest tax figures released suggest that government has collected Rs 6.63 lakh crore up till January and will not be able to achieve the Rs 9.32 lakh crore target for the fiscal.
Meanwhile, CBDT Chairman Laxman Das has written to top Income Tax officials to take up the "challenge" of filling the deficit.
"At this critical juncture, our task as revenue administrators becomes that much more challenging. As senior officers, we have to play a critical role in making all possible efforts to improve the situation. We have to ensure every CC/DG achieves the budget target," Das told his Chief Commissioners and Commissioners.
The Finance Ministry said in a statement that at the present rate of growth, the Central Board of Excise and Customs, responsible for collecting indirect taxes, "should be able to achieve the target of Rs 3,92,908 crore".
It is ,perhaps, not too late yet for the FM to find the right balance between economic requirements & political expediency. Otherwise, our politics-driven profligacy is threatening to lead us to a Greece-like situation.
well well pranabda, someday some one will have to restructure the subsidy structure from base line, any why not u to do this before retirement? there are areas where subsidies are wasted like anything, highly misused just because of government pressures for unncessary targets,however we know shortly we may have epayments of subsidy to avoid misuse but still some strick and clear ways can be found to save unnecessary subsidy payments, any way we are worried only for your sweet dream sleeps, i prey god to give comfortable sleep before budget time, wish good luck
Magarmachchh ke aansoo. Use of free infinite solar heat and light and free infinite rain water is the easiest way out to current problems. When India receives infinite solar heat about to cook food and heat water why there is LPG and kerosene subsidy even to the richest. When diesel and electricity is being given to farmers at subsidized prices why it is not mandatory for all of us to harvest rain water. When depreciating rupee is the chief cause of inflation why we are doing every possible effort to increase imports particularly in fields of crude, bullion and tech stuffs and are making their indigenous substitutes unpopular. Every Indian from first to last person is at fault for sorry state of economy and of bottom 75 percent of our population.
GOVT IS REQUESTED TO THINK ABOUT RISING DEFICT,SLOW ECONOMIC GROWTH, GLOBAL MELTDOWN,ETC.
SUBSIDIES, BAIL OUT PACKAGES,
EQUITY INFUSION IN PSUBANKS, HELP TO AIRINDIA SHALL TROUBLE GOVT ,TAX PAYERS HENCE ANY NEW BILL WHICH CAN ENHANCE FURTHER BURDEN TO EXCHEQUER, BE PUT TO HALT ATLEAST FOR THE TIME BEING.
elimination of subsidies is not troublesome provided the key requirements affecting farmers are met with.
1.assuring augmentation of water supplies to save the crops by inter-connecting the flooding rivers with dry rivers,checkdams,tanks and new recharging pools
2.direc marketing by farmers ,avoiding all-sales after harvest at one time by creating holding facilities with finance made available against the same.
3insurance in critical centers for losses due to unforseen contingencies.
Content Guide
Faced with subdued revenue mop-up and rising fiscal deficit, Finance Minister Pranab Mukherjee today said he is "losing sleep" over mounting subsidy bill, which may cross Budget estimate by Rs 1 lakh crore in 2011-12.
