Search the Internet          Tips  Sites: Finance, Investment

'Government finances in good shape'

Our Economy Bureau in New Delhi

Finance secretary S Narayan has said the government is in a comfortable financial position.

Speaking to reporters after a seminar on Wednesday, Narayan said the expenditure and revenue trends of the government are under control.

He said the comfortable cash position of the Centre was the reason why had been able to postpone one round of borrowing of Rs 5,000 crore (Rs 50 billion) slated for November.

He said "as of now the situation is fully under control". According to the secretary the full expenditure trends would become clear only by December after the finance ministry completes its discussions with the central ministries on revised estimates.

Besides the government would also be receiving the third advance instalment of corporate taxes by the middle of December. The corporates pay 75 per cent of their tax liability by then.

The Centre however faces pressure on its finances due to the additional liability due to drought as well as the spectre of lower revenue collection because of the same phenomena impacting the profit margins of companies.

The Centre would also have to make additional provisioning for helping the states to reduce their debt burden.

It has already shelled out Rs 3,154 crore (Rs 31.54 billion) to five states to tide over their ways and means difficulties.

The Centre has however some leeway in terms of reduced defence spending and a lower interest burden on its borrowing as the rates of interest on its loans have begun dipping. There is also some savings expected on petroleum subsidy.

Powered by

ALSO READ:
More Money Headlines