Review of Finances:Union Government of India

The fiscal outcome of this first four years of the current five year plan got deviated from the path of fiscal consolidation following the stimulus packages / booster doses injected to the economy to reduce the impact of world economic crisis. Strategic increase in the expenditure along with reduction in the tax revenue collection increased the fiscal deficit in this medium run. Gradually India had begun the process of fiscal consolidation from the year 2010 on ward with a partial withdrawal of the stimulus measures. The policy stance is to continue to facilitate growth momentum to achieve pre crisis growth targets and simultaneously to address long term fiscal sustainability. In the backdrop of this policy stance the present paper analyses the finances of The Union Government of India.