The government on Friday put a brave front over rising fiscal deficit saying it will remain on target at 5.6 per cent of the GDP following improved revenue collection and expenditure control.
"Fiscal deficit is expected to be contained at 5.6 per cent of the GDP and there is nothing that has happened to make me believe that fiscal deficit will overshoot the target," Chief Economic Advisor Ashok Lahiri said in New Delhi.
Lahiri's comments came a day after the figures released by the Controller General of Accounts showed that the fiscal deficit rose by 40 per cent in the first six months of the current fiscal to touch Rs 81,014 crore (Rs 810.14 billion) as compared to Rs 57,746 crore (Rs 577.46 billion) in the corresponding period last year.
The fiscal deficit in April-September this year amounted to 52.7 per cent of the budget estimates of Rs 1,53,637 crore (Rs 1,536.37 billion). In the first half of 2002-03, the fiscal deficit was 42.6 per cent of the budget estimates.