03 August, 2010

India seeks a net extra $11.8 bn to spend in FY11

India on Tuesday sought parliamentary approval to spend a net additional Rs 545.89 billion ($11.8 billion) in the 2010/11 fiscal year.Finance Minister Pranab Mukherjee told parliament the gross additional spending nod sought was for 682.94 billion rupees. The government has a budget target of spending 11.09 trillion rupees in the current fiscal year. The government seeks legislative approval for spending amounts beyond what it estimates during the budget for the year.

Generally these additional sums are for increases in major expenditure heads such as interest payments and subsidies. Finance Minister Pranab Mukherjee in February had set a fiscal deficit target of 5.5 percent of gross domestic product (GDP) for 2010/11, and said the the gap would be partially funded through market borrowings of 4.57 billion rupees.