Budget 2012-13: Fiscal balance has deteriorated, says FM

NEW DELHI: India's fiscal deficit numbers were impacted negatively due to decreased corporate tax collections and increased subsidy payouts, Finance Minister Pranab Mukherjee said while presenting the Budget 2012-13.

The Economic Survey tabled on Thursday said rapid fiscal consolidation was effected in 2010-11 with fiscal deficit dropping to 4.8 per cent of gross domestic product (GDP) from 6.5 per cent of GDP in 2009-10. The Budget for 2011-12 estimated a further reduction to 4.6 per cent of GDP to be achieved through a 16 per cent growth in tax revenue, disinvestment receipts of Rs 40,000 crore and moderation in growth in expenditure to 4.9 per cent.