Govt seeks parliament nod for more spending

Written By Unknown on Jumat, 07 Desember 2012 | 14.02

NEW DELHI (Reuters) - Finance Minister P. Chidambaram on Friday sought parliamentary approval to spend a net additional 308.4 billion rupees in the current fiscal year that ends in March 2013, which would further swell the fiscal deficit.

The demand comes on top of the budgeted target of around $275 billion, mainly to meet the rising cost of subsidies such as in oil, documents presented by Chidambaram in parliament showed.

The deficit during the April-October period rose to 3.68 trillion rupees, or 71.6 percent of the budgeted fiscal year 2012/13 target.

Chidambaram recently revised the fiscal target to 5.3 percent from an earlier estimate of 5.1 percent of GDP, but most economists expect the government to overshoot this and hit around 5.5-5.6 percent.

(Reporting by Manoj Kumar; Editing by Matthias Williams and Prateek Chatterjee)



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