The government seems to be relying on ‘off-balance sheet’ debt for funding a large part of its capex push. Almost 80% of incremental resources outside the budget is expected to come from higher borrowings.
Fiscal deficit has risen to Rs5.68trn in April-January period, way beyond the budget estimates. The government seems to be relying on ‘off-balance sheet’ debt for funding a large part of its capex push. Almost 80% of incremental resources outside the budget is expected to come from higher borrowings.
This raises legitimate questions about ‘true’ fiscal deficit but also highlights the fuzzy nature of the concept of fiscal deficit itself.
The fiscal deficit during April-January period of 2013-14 stood at 98.2%.
In the Budget speech, Finance Minister Arun Jaitley had said government would achieve the 4.1 per cent fiscal deficit target in 2014-15.
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