Economic Affairs Secretary Arvind Mayaram informed that the government would not overshoot its revised fiscal deficit target of 5.3 percent in 2012-13.
Earlier, Finance Minister P Chidambaram said this year fiscal deficit will be 5.3 per cent, instead of the budget estimate of 5.1 percent.
Fiscal deficit refers to the gap between government's expenditure and revenue receipts. In view of lower-than-expected revenue realisation and increased subsidy outgo, the finance ministry is expecting the fiscal deficit to go up to 5.3 per cent during 2012-13.
In order to finance the 5.1 per cent deficit, the government had planned to borrow Rs 5.7 lakh crore. A higher fiscal deficit of 5.3 per cent translates into an additional market borrowing of Rs 20,000 crore.
The government has no immediate plans to go for additional market borrowing and decision in this regard would be taken in January-February.
He said the ministry would assess around February, what its borrowing requirement is, if there is any. The government is currently borrowing Rs 20,000 crore every week from the markets.
In the first half (April-September) of 2012-13, the fiscal deficit rose to Rs 3.37 lakh crore which was 65.6 per cent of the budget estimate. Fiscal deficit scenario worsened for government on account of lower tax realisation and poor response to disinvestment programme.
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