Business Daily from THE HINDU group of publications
Friday, Jun 12, 2009
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Business Daily from THE HINDU group of publications Friday, Jun 12, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Economy Government - States States seek relaxation in fiscal deficit ceiling for 2009-10 Our Bureau New Delhi, June 11 States today sought relaxation in the ceiling of the fiscal deficit they can run up in 2009-10 so that they can spend more on infrastructure and social programmes. Their demand on more leeway for increased social and infrastructure expenditure comes on the heels of the Centre’s recent promise of higher spend on its flagship programmes. Pre-Budget meetingA number of State Finance Ministers who attended Thursday’s pre-Budget meeting called for flexibility in the fiscal deficit ceiling under the Fiscal Responsibility and Budget Management Act. “I have said that fiscal deficit ceiling should be relaxed by two per cent. It should be increased from ceiling level of 3.5 per cent of last year,” the Himachal Pradesh Chief Minister, Mr Prem Kumar Dhumal, told reporters after the meeting. FlexibilityThe Assam Chief Minister, Mr Tarun Gogoi, said a number of States, including Assam, had sought flexibility in fiscal deficit ceilings for 2009-10. For the year 2008-09, the Centre had relaxed by 0.5 per cent of the gross State domestic product (GSDP) to 3.5 per cent, the ceiling of fiscal deficit that the States could incur in terms of the debt consolidation and relief facility set up under the Twelfth Finance Commission award. The Finance Minister, Mr Pranab Mukherjee, had in the interim Budget said that this relaxation may have to be reviewed seeing the response of the economy in the coming months. However, many States are now pitching for extending the ceiling even for the current fiscal. More Stories on : Economy | States
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