Subsidy Bills a Shocker,to Top Budget by 1 L cr

After the defeat,came the deficit bombshell.Soon after the UPA government retreated on its decision to allow foreign direct investment (FDI) in multi-brand retail to restore normalcy in Parliament,it had to confront some grim economic numbers.The total subsidy bill for the year 2011-12 could exceed the estimates by up to.1,00,000 crore,or 70%.This could widen fiscal deficit to as much as 5.7% of GDP.Although fiscal slippage isnt unexpected as the finance minister himself confirmed and explained the overshooting of expenditure a few weeks ago it is the extent of it that is surprising.

Read Full Story>>