India's fiscal deficit has crossed the government's initial estimate of 2.5 per cent of Gross Domestic Product in the eight months up to November 2008. As a result, the market borrowing by the Centre also crossed the Budget estimate of Rs 113,000 crore (Rs 1,130 billion) by nearly Rs 21,000 crore (Rs 210 billion) in the same period.
According to the data released by the Controller General of Accounts, the Union government's overall deficit is now estimated at Rs 1,76,510 crore (or 3.31 per cent of GDP) till November 2008, as compared with the budget estimate of Rs 1,33,287 crore (Rs 1,332.87 billion).
However, the deficit is likely to come down because of advance tax paid by companies and individuals during December. This comes at a time when both direct and indirect tax collections (excluding service tax) dipped in November this year because of economic slowdown.