India Fiscal deficit

     Indian Government fiscal deficit is a cause of concern since long time. Recently it has been announce that it has already reached 93% of the target in 9 Months itself for FY12. With three months only to go the deficit will overshoot. Government had set a fiscal deficit target of 4.6% of the GDP but it is likely to touch 5.75% or may 6%. During April to December 2010 the deficit was only 45% of the Target. It clearly shows that Government has completely left it to go down as much as it can  All including RBI Governor has recently criticized the Government for such alarming fiscal deficit during his third quarter monetary policy review. Government received lot of Money last year in the form of 3G auctions but this year it is facing lot of difficulty. The deficit financing by way of a loan is a concern for any Country. Government local and overseas Borrowing is increasing .The coming Budget must finalize some strategy to curb the fiscal deficit like the one done few years back by one earlier Finance Minister. We can no longer keep it open.