The finance ministry wants ministries to maintain spending in line with budget allocations, dismissing fiscal concerns that have arisen halfway through the year after the recent spectrum auction fell short of target and the August deficit number was the highest in seven years.
Any shortfalls will be made up by collections under the just-concluded black money disclosure scheme besides which stakes held in companies through the Specified Undertaking of the Unit Trust of India (SUUTI) will provide an added cushion without the government having to scale back spending to meet the fiscal deficit target of 3.5 per cent of GDP for the fiscal year, a senior finance ministry official told ET. “We want ministries to spend what has been allocated to them,” the official said.
“We are on track on the fisc.” At the end of August, the fiscal deficit was at 76.4 per cent of what’s been budgeted for the year, the highest since FY09 for the month, sparking concerns that Finance Minister Arun Jaitley may struggle to meet the target.
The government will get Rs 32,000 crore from spectrum auction this year against an anticipated Rs 64,000 crore while the seventh pay commission award is expected to cost more than what has been set aside.
Capitalstars Financial Research Private Limited is a research house and an investment advisory carrying out operations in the Indian Equities and Commodity market.We also provide 2 days free trial to our client.Join our services and trade with us.
Get more details here:-
Commodity Market Tips
Equity Tips
0 comments:
Post a Comment