Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: form 3cd :: empanelment :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARD
 
 
General »
 Simplified one page Income Tax Return Form: Changes to keep in mind before filing tax return for AY2017-18
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 GST coming July 1 despite calls for delay: Revenue Secretary Hasmukh Adhia
 Centre introduces provision of taxation on NPS in Income Tax Act
 Income Tax Department Clarifies On Cash Withdrawal From Banks, Post Offices
 The Goods And Services Tax (Compensation To States) Bill, 2017
  Goods and Service Tax (GST) and Real Estate Sector
 New Income Tax Rules On Home Loan Come Into Effect
 Here's how late filers can save on stress and taxes
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib ?Kalyan Yojana, 2016
 Companies should invest in upgradation of tax technology

Fiscal deficit up 25% at Rs 4.12 lakh cr
June, 02nd 2010

As the government cut duties and stepped up public expenditure, its fiscal deficit rose by 24.89 per cent to Rs 4,12,307 crore in 2009-10 compared to the year ago period.

Fiscal deficit had stood at Rs 3,30,114 crore during 2008-09.

Initiating the stimulus measures to spur the slowing down economy after global financial crisis deepened, the government cut excise duty by four per cent in December, 2008. It again cut excise duty as well as service tax by two per cent in February, 2009.

So higher impact of stimulus measures in the form of tax cuts came in 2009-10, which resulted in widening of fiscal deficit.

Similarly, Plan expenditure was stepped up to give a boost to the economy, further widening the gap between expenditure and receipts of the government.

As a result, while tax revenue rose by just 2.61 per cent to Rs 4.59 lakh crore in 2009-10 compared to a year ago period, Plan expenditure increased by 9.71 per cent to Rs 3.02 lakh crore.

Adding non-tax revenue, the government's total receipts rose to Rs 6.06 lakh crore in 2009-10, while together with non-Plan expenditure, the total expenses increased to much higher level of Rs 10.18 lakh crore.

As such, fiscal deficit widened to Rs 4,12,307 crore. However, if taken as a proportion of GDP, the government was able to restrict fiscal deficit to 6.61 per cent of the size of economy (Rs 62,31,171 crore) against 6.1 per cent a year ago.

It was much lower than 6.7 per cent, envisaged in the revised estimates, given at the time of presentation of this fiscal year's Budget.

At the time of the presentation of Budget 2010-11, GDP was estimated at a lower level of Rs 61,64,178 crore, and the fiscal deficit was pegged at a higher 6.7 per cent.

If the GDP figures, released yesterday, are taken into account, the figures at the time of Budget 2010-11 would have shown a fiscal deficit at 6.64 per cent. So, the containment of fiscal deficit is not as high and just 0.03 per cent lower than Rs 4,14,041 crore given in the revised estimate.

The Centre's fiscal deficit grew to over 6 per cent in 2008-09, after the government provided stimulus to the slowing economy by resorting to a slew of tax cuts and public spending.

In fact, that year fiscal deficit should have been contained to half -- 3 per cent of GDP -- as per the Fiscal Responsibility and Budget Management Act against what it actually turned out to be.

This fiscal, the government has targeted to rein in fiscal deficit at 5.5 per cent of GDP, as it along with other measures partially withdrew stimulus by raising excise duty on non-petroleum products by two per cent.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions