Fiscal deficit likely to come down to 4.7% in 2013-14

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

"Fiscal deficit will be restricted at 4.7%, but it will happen by credible means. The realisation from spectrum auction will help better the number," the official told PTI.

The government had budgeted to bring down fiscal deficit to 4.8% of GDP in the current financial year, from 4.9% in 2012-13.

"We have drawn a redline and credit rating agencies are satisfied by our number," the official said.

As much as Rs 56,190 crore worth bids have already come in from the ongoing auction of 2G radiowaves and the figure is likely to go up further.

The government in its budget had estimated to collect only Rs 40,000 crore from the spectrum auction.

Even as the government is still far from meeting its disinvestment target of Rs 40,000 crore for fiscal ending March 31, about Rs 19,000 crore dividend from Coal India is expected to make up for the shortfall.

The government has already curtailed its borrowing plan for the current fiscal by Rs 15,000 crore in view of the comfortable liquidity position.

The total market borrowing by the government would now come down to Rs 5.64 lakh crore, from Rs 5.79 lakh crore as envisaged in the 2013-14 Budget. The net borrowing, which is a reflection of fiscal deficit, as per the budget was Rs 4.84 lakh crore.

Government borrows funds by issuing dated securities to finance the fiscal deficit.

In the April-December period, fiscal deficit had touched 95.2% of the budget estimates.

EDITORIAL OF THE DAY

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture