Fiscal deficit projected at 6.8 percent of GDP in 2009-10

New Delhi, July 6 (ANI): Union Finance Minister Pranab Mukherjee on Monday said that the fiscal deficit as a percentage of GDP is projected at 6.8 per cent as compared to 2.5 per cent of the Budget Estimates (BE) for 2008-09 and 6.2 per cent as per the provisional accounts of 2008-09.

Presenting the General Budget for 2009-10 in Lok Sabha on Monday, Mukherjee assured that government would address the issue properly to come back to the path of fiscal consolidation, as this level of deficit was a matter of concern.

Mukherjee informed that the Budget Estimates for 2009-10 provide for a total expenditure of Rs.10,20,838 crore consisting of Rs.6,95,689 crore towards Non Plan and Rs.3,25,149 crore towards Plan expenditure.

At the projected level the Non Plan expenditure marks an increase of 37 per cent over BE 2008-09, whereas the Plan expenditure increases by 34 per cent.

The increase in expenditure in 2009-10 BE has been pegged at 36 per cent.

Mukherjee also pointed out that the Non Plan expenditure mainly increases on account of implementation of the 6th Pay Commission recommendations, increased food subsidy and higher interest payment arising out of the larger fiscal deficit in 2008-09. (ANI)