Fiscal Deficit to be at 4.7% of GDP in FY14

Fiscal deficit is likely to be contained at 4.7 per cent of GDP in 2013-14 because of better- than-expected response to the ongoing auction of telecom spectrum, a top finance ministry official said.

The fiscal deficit in the first nine months of FY14 stood at Rs 516390 crore, which was 95.2% as a proportion of Budget Estimate compared with 78.8% in the same period last year 2013. Lagging revenue growth and still-high expenditure growth especially in the context of weak revenue collections, is putting a strain on the fiscal situation. The upside to fiscal deficit has been due to relatively sharper increase in expenditure as compared to the revenues.

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