Fiscal deficit is likely to be contained at 4.7 per cent of GDP in 2013-14 because of better- than-expected response to the ongoing auction of telecom spectrum, a top finance ministry official said.
“Fiscal deficit will be restricted at 4.7 per cent, but it will happen by credible means. The realisation from spectrum auction will help better the number,” the official told the news agency.The Government had budgeted to bring down fiscal deficit to 4.8 per cent of GDP in the current financial year, from 4.9 per cent in 2012-13.
“We have drawn a redline and credit rating agencies are satisfied by our number,” the official said.As much as Rs 56,190 crore worth bids have already come in from the ongoing auction of 2G radiowaves and the figure is likely to go up further.The Government in its budget had estimated to collect only Rs 40,000 crore from the spectrum auction.
Even as the Government is still far from meeting its disinvestment target of Rs 40,000 crore for fiscal ending March 31, about Rs 19,000 crore dividend from Coal India is expected to make up for the shortfall.