(Online Course) Contemporary Issues for IAS Mains 2012: Govt. Plans Programmes & Policies – Fiscal Consolidation

Govt. Plans Programmes & Policies

Initiatives Taken to Improve Indian
Economy

Question: Fiscal Consolidation.

With the resumption of the fiscal consolidation process in
budget 2012-13, the government seeks to bring down the fiscal deficit to 5.1 per
cent of GDP in 2012-13 from 5.9 per cent in 2011-12.


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The correction in fiscal deficit is largely through revenue
augmentation. The move towards a nutrient based subsidy in fertilizer is
expected to reduce expenditure on fertilizer subsidy, while promoting balanced
use of fertilizer.


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