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India's fiscal deficit for the 2008/09 fiscal year that ended on March 31 was 3.3 trillion rupees ($70 billion), the government said in a statement on Friday.

The deficit is equivalent to 6.2 percent of India's gross domestic product (GDP), according to a Reuters calculation, and was higher than the government's target of 6 percent.

In February, the government had revised upwards its fiscal deficit estimate for the year to 3.27 trillion rupees, equivalent to 6 percent of gross domestic product from an initial estimate of 2.5 percent.

The deficit widened after the government announced extra spending of close to 1.5 trillion rupees to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy among other measures.

 Top Comment : Rohit Khanna   | 06 01 2009 13:50:54 +0000
Good insight there, mostly incur more taxes on businesses and people to curb the deficit...
 
5 comments on "How To Curb Fiscal Deficit Of $70 Bn. ?"
  Commented by  ravi a sambhwani, B.Com student, ICFAI Business School, Hyderabad    | 06 29 2010 10:22:17 +0000
i want to equity research analyst 
i have done cfa from icfai
but no company is giving me chance to work as i dont have experiance in this field 
i said may at juniour level or at  trainee level give me job 
but they are saying no 
i dont know what to do
pls help me if u have any reference
ravi_sambhwani@yahoo.co.in
Mob:-9323642027
  Commented by  Jyoti Rath, Sr. Associate, Barclays    | 06 02 2009 11:01:08 +0000
Mr Rohit and Mr. Japan shah are right here there should be more tax and government not giving tax exemptions for foreign companies which are setting up their base here, as this was the case which was before where they attracted with tax exemptions for their businesses, so only tax and disinvestment will help to recover the deficit..
  Commented by  Japan Shah, Assistant Professor, Omegan School of business    | 06 01 2009 17:17:33 +0000
Rating : +1 
Good insight Abhay, as Rohit rightly said, more taxes. Also disinvestment is a option that government will use, i also believe that the government will issue a lot of bonds to corporates and finally more hold of the corporate on the government..
  Commented by  varsha, technical manager(QMS)    | 06 01 2009 15:32:45 +0000
Rating : +1 
good one..
  Commented by  Rohit Khanna, Project Leader/Managing Consultant, Accenture    | 06 01 2009 13:50:54 +0000
Rating : +3 
Good insight there, mostly incur more taxes on businesses and people to curb the deficit...
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