India is grappling with slowdown in the economy and bleeding market. This, however, may not increase fiscal deficit of India. According to finance ministry sources, FY12 fiscal deficit may rise marginally at 4.8% ........
India is grappling with slowdown in the economy and bleeding market. This, however, may not increase fiscal deficit of India. According to finance ministry sources, FY12 fiscal deficit may rise marginally at 4.8% compared to a target of 4.6%, reports CNBC-TV18's Aakansha Sethi quoting sources. The slippage in deficit due to high subsidies, says sources.
It is learnt that the government will try to achieve Rs 40,000 crore divestment target and is eyeing to get Rs 30,000 crore from spectrum sale.
The government is also considering infuse equity into PSU banks like SBI . The country's largest lender is hoping to reactive an injection of up to USD 2 billion from government this fiscal year.
However, the dampener here is that data released last week showed India reached 66% of its full-year fiscal deficit target in just five months, and the current account deficit widened to USD 14.1 billion in the June quarter, compared with USD 12 billion in the same period a year ago.
As far as taxes are concerned, CNBC-TV18 learns that there is a decline of about 10.9% in customs and 0.3% in central excise and increase of 29% in service tax. So, tax collections have shown an increase of only 1.2%. However, a warning of caution is that these are only provisional figures and are valid only up to September 30.
Hence, it is possible that there will be a reversal of that trend in the remaining five days. It remains to be seen if that will happen or not; the final figures will be released only by October 10.
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India is grappling with slowdown in the economy and bleeding market. This, however, may not increase fiscal deficit of India. According to finance ministry sources, FY12 fiscal deficit may rise marginally at 4.8% compared to a target of 4.6%, reports CNBC-TV18's Aakansha Sethi quoting sources. The slippage in deficit due to high subsidies, says sources.
It is learnt that the government will try to achieve Rs 40,000 crore divestment target and is eyeing to get Rs 30,000 crore from spectrum sale.
The government is also considering infuse equity into PSU banks like SBI . The country's largest lender is hoping to reactive an injection of up to USD 2 billion from government this fiscal year.
However, the dampener here is that data released last week showed India reached 66% of its full-year fiscal deficit target in just five months, and the current account deficit widened to USD 14.1 billion in the June quarter, compared with USD 12 billion in the same period a year ago.
As far as taxes are concerned, CNBC-TV18 learns that there is a decline of about 10.9% in customs and 0.3% in central excise and increase of 29% in service tax. So, tax collections have shown an increase of only 1.2%. However, a warning of caution is that these are only provisional figures and are valid only up to September 30.
Hence, it is possible that there will be a reversal of that trend in the remaining five days. It remains to be seen if that will happen or not; the final figures will be released only by October 10.
more info