New Delhi: The Government may not meet its revenue collection target for 2011-12 amid inflation and slow industrial growth leading to a rise in fiscal deficit.

Finance Minister Pranab Mukherjee projected a fiscal deficit of 4.6 percent of the gross domestic product (GDP) for financial year 2011-12. The Central Government had expected to generate Rs 6,64,457 crore as revenue for the current fiscal.

Within the first three months of the current fiscal the government is already concerned to meet its tax revenue target.

High inflation and slow industrial growth may lead to a fall in revenue collection target though the government is constantly engaged in finding alternatives to meet the target. 

Government is procuring all possibilities to slash cost of retirement benefits and pension by increasing the retirement age. The Ministry of Finance has asked the Ministry of Personnel to explore options in this regard.

If the retirement age is raised by two years government can be sure of two years pension bill. It expects pension expenditure to remain around Rs 54, 521 crore for the current financial year.

The Central Government does not see much scope for disinvestment in non-tax revenue.

 

(JPN/Bureau)