While we are battered with news about abandoned babies, victories and then losses for telecom firms, elections in UP and surging stock markets, it's useful to note the quietly released data on the fiscal deficit that are seriously alarming.
The Comptroller General of Accounts (CGA) has reported that the government revenue, from April to December 2011, is 15% lower than the same period last year. Meanwhile, total expenditure is up 14%. Higher spending and lower revenue point to a fiscal deficit that is more than double last year's figures, till December.
Advance Taxes Are Not Enough
December, was when corporates (and individuals) pay another chunk of advance tax. This should have bolstered government revenues, but it seemingly has not. Total tax revenue in December, net of what was paid to the states, was Rs 99,944 crores, just 5.3% above the previous year. For the April to December time period, tax collections are just 7.5% higher.
Consider that India's Gross Domestic Product hasRead More »from Why is India’s fiscal deficit so high?