New Delhi: The government's fiscal deficit will overshoot the Budget estimates of 4.6 per cent in the current fiscal and will be close to 5.2 per cent of GDP in 2012-13, industry chamber FICCI said on Tuesday.
"Based on detailed government revenue expenditure trends, FICCI estimates that the fiscal deficit in 2012-13 may be close to 5.2 per cent of GDP as compared to a likely FD of 5.7-5.8 per cent of GDP in 2011-12," the chamber said in a
statement.
It said declining receipts, sticky expenditure, stubborn deficit and a revival in growth prospects remains the key challenge for the Government while preparing the Budget.
Finance Minister Pranab Mukherjee will present the Union Budget for 2012-13 fiscal in the Lok Sabha on March 16. FICCI said to achieve a below 5 per cent fiscal deficit for 2012-13, the government may have to resort to some revenue mobilisation measures that may be one off in nature.
FICCI research shows that a revenue mobilisation of Rs 40,000 Rs 50,000 crore and upwards will bring down the fiscal deficit from 5.2 per cent to below 5 [er cent in next fiscal.
"Alternatively, the Government can hope for some buoyancy in non-tax revenue through 2G /4G," it said, adding that the it should also look at expanding the tax base by bringing agricultural income under the tax bracket.
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