India’s budget gap in the eight months through November reached 80.4 percent of the full-year target as Finance Minister Palaniappan Chidambaram tries to reduce the shortfall.
The gap was 4.13 trillion rupees ($75 billion), the Controller General of Accounts said on its website today, better than the 85.6 percent figure in the same period a year earlier. The budget-deficit target for the year through March 2013 is 5.14 trillion rupees.
India’s efforts to rival China as the fastest-growing major emerging nation have been hurt by budget and trade deficits and supply bottlenecks that have kept inflation above 7 percent. Prime Minister Manmohan Singh last week cut the goal for economic growth in the five years to 2017 and signaled further fuel-price increases to curb subsidies that stoked the shortfall.
Chidambaram has pledged to narrow the budget deficit to 5.3 percent of gross domestic product this fiscal year from 5.8 percent in 2011-2012. Last year’s gap was the widest among the largest emerging markets, fanned by a subsidy program ranging from diesel to fertilizers.
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