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 today.
“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.