The finance ministry has initiated strict monitoring of expenditure and has asked ministries and departments to stay within their allocation for the current financial year in an attempt to ensure that fiscal targets for the year are not breached.
"We are keeping a close watch on expenditure," a finance ministry official told ET.
As a part of the exercise, the finance ministry has asked all ministries and departments to remain within budgeted expenses and not to bring out any new scheme, the official added.
Though no austerity measures are being contemplated, the message from the North Block to ministries and departments is clear that it would encourage only prudent spending.
"The entire exercise is aimed at ensuring that there is no slippage in the fiscal deficit target of 4.6% of GDP for 2011-12," the official said. Finance minister Pranab Mukherjee himself is keen to ensure that government's expenditure management does not go awry, having repeatedly said that the fiscal deficit target of 4.6% of GDP will be adhered to.
A strict monitoring at the beginning of the financial year itself will prevent any unplanned rise in expenditure and help the government meet its target of 4.6% fiscal deficit.
The government contained its fiscal deficit, the gap between overall expenditure and receipts, at 4.7% of GDP during 2010-11 much lower than the revised estimate of 5.1%.
However, experts say the task is more challenging in the current financial year.
"It (achieving 4.6% fiscal deficit target) is going to be very difficult in the current financial year as growth is expected to moderate and oil prices continue to remain high," said D K Joshi , chief economist, Crisil.
"We see gathering risks to the budget deficit target of 4.6% of GDP for FY11-12," wrote Deutsche Bank economist Taimur Baig in a note on May 24.
Source : ET
"We are keeping a close watch on expenditure," a finance ministry official told ET.
As a part of the exercise, the finance ministry has asked all ministries and departments to remain within budgeted expenses and not to bring out any new scheme, the official added.
Though no austerity measures are being contemplated, the message from the North Block to ministries and departments is clear that it would encourage only prudent spending.
"The entire exercise is aimed at ensuring that there is no slippage in the fiscal deficit target of 4.6% of GDP for 2011-12," the official said. Finance minister Pranab Mukherjee himself is keen to ensure that government's expenditure management does not go awry, having repeatedly said that the fiscal deficit target of 4.6% of GDP will be adhered to.
A strict monitoring at the beginning of the financial year itself will prevent any unplanned rise in expenditure and help the government meet its target of 4.6% fiscal deficit.
The government contained its fiscal deficit, the gap between overall expenditure and receipts, at 4.7% of GDP during 2010-11 much lower than the revised estimate of 5.1%.
However, experts say the task is more challenging in the current financial year.
"It (achieving 4.6% fiscal deficit target) is going to be very difficult in the current financial year as growth is expected to moderate and oil prices continue to remain high," said D K Joshi , chief economist, Crisil.
"We see gathering risks to the budget deficit target of 4.6% of GDP for FY11-12," wrote Deutsche Bank economist Taimur Baig in a note on May 24.
Source : ET
No comments:
Post a Comment