Fiscal deficit soars 42 pc till Q3-end

At a time when the economy is showing tell-tale signs of recovery due to increased expenditure by the government,the surging fiscal deficit may act as a dampener for the policy makers. The fiscal deficit rose by 42 per cent during the first nine months of the current fiscal due to various stimulus measures taken to boost the economy facing global meltdown. The deficit for April-December period rose to Rs 3.09 lakh crore against Rs 2.18 lakh crore a year ago,according to data released by the Controller General of Accounts. Fiscal deficit stood at 77.3 per cent of the total budgeted estimate BE of Rs 4.01 lakh crore for 2009-10,the data said.