MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMO NARAIN MEENA)
(a): Fiscal deficit of India during the last three years and the
current year till date (upto June 2011) is as under:
Year Fiscal deficit (as % of GDP)
2008-2009 6.0%
2009-2010 6.4%
2010-2011(provisional) 4.7%
2011-2012(upto June 2011) 1.8%
(b): The increase in fiscal deficit in the year 2008-09 and 2009-10
is mainly on account of counter cyclical measures taken by the government
to overcome the effects of the global slowdown which resulted in short
fall in revenue and substantial increases in government expenditure.
This was a part of government’s policy initiative based on the principle
of insulating the vulnerable sections of the society and sectors of the
economy from the adverse impact of the economic downturn and at the same
time ensure revival of the economy with higher growth.
(c): The medium term objective of the Government is to revert to the
path of fiscal consolidation with emphasis on fiscal reforms encompassing
all aspects of budget making. With improvement in prevailing economic
conditions, the process of fiscal consolidation has been resumed from the
year 2010-11 with partial roll back of reduction in Union Excise Duty and
reduction in the rate of growth in expenditure.
(d): No, Sir.
(e) and (f): Do not arise.
