Indian govt to miss fiscal deficit target by wide margin

The news just got worse for the Indian government. The fiscal deficit that has been worrying them has just burgeoned to Rs 1.5 lakh crores. This is nearly three times what was estimated just three months ago. Sluggish direct tax collections, mushrooming subsidy bills, and dismal disinvestment inflows have led to these fiscal troubles. The situation is so bad that the government is now counting on higher dividends from the cash rich PSUs to help bridge some of the gap. The combination of food, fertiliser and fuel subsidy has played havoc with the government's estimates since the budget was presented in 2011. It is no longer a question as to whether they will achieve the target but more a question of by how much will they miss the same.
current position is around 8.5%.of GDP.