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Revenue From 3G Auction To Help Tackle Fiscal Deficit: Chawla

With a more-than-expected revenue coming in from the 3G auction, the Government is now in a better position to handle the fiscal deficit, a senior Government official said on Monday."It immediately gives us addition in
PTI May 24, 2010 20:25 IST
PTI

With a more-than-expected revenue coming in from the 3G auction, the Government is now in a better position to handle the fiscal deficit, a senior Government official said on Monday.

"It immediately gives us addition in terms of non-tax revenue...the fiscal situation is far more encouraging," Finance Secretary, Ashok Chawla, told reporters after the High Level Co-ordination Committee on Financial Markets (HLCCFM) meeting held here at the Reserve Bank.

The Government has projected a fiscal deficit of 5.5 per cent for FY 11.

Besides, the Government expects more revenue from the forthcoming auction of broadband wireless access which would also give it some additional headroom, Chawla said.

The money garnered from the 3G auction was more than expected at Rs 68,000-crore as against the earlier anticipated Rs 35,000-crore.

Chawla said that he did not visualise any liquidity crunch in the system in the immediate future.

The payment for the 3G auction and advance tax outgo are unlikely to cause any liquidity crunch in the system, he said.

'Our expectation is that this will not cause any liquidity crunch," Chawla said.

The HLCCFM meet held today primarily discussed the development of the corporate bond market, he said.

The meeting was attended by Sebi Chairman, C B Bhave, RBI Governor, D Subbarao, IRDA Chairman, J Hari Narayan and Financial Services Secretary, R Gopalan, among others. PTI