The Centre’s financial health is turning increasingly bleak with both fiscal and revenue deficits crossing the halfway mark in just four months into the year due to a massive increase in its spending.
The rise is most sharp for government’s own consumption expenditure while investment spend remained subdued.
The Centre’s fiscal deficit shot up to 51.5 per cent of the Budgeted target of Rs 5,13,590 crore to touch Rs 2,64,432 crore by July end 2012.
It was significantly lower a month ago at 1,90,460 crore. Even a year ago, the fiscal deficit was marginally lower at Rs 2,28,753 crore.