Deficit financing mounts to Rs783.3b

The country’s fiscal deficit mounted to Rs 783.3 billion or 4.5 per cent of the GDP in the first three quarters (July-March) of the ongoing financial year 2010-11. Meanwhile, the defence budget swelled to Rs 335.1 billion during the said period.
The Ministry of Finance Tuesday released the Fiscal Operation Report for July-March period of ongoing fiscal year. According to the report, the government’s expenditures went up to Rs 2,278.512 billion or 13.2 per cent of the GDP as against the total revenues of Rs 1495.254 billion or 8.6 per cent of the GDP.
HIGHER THE BUDGET DEFICIT OR LOWER THE REVENUE=HIGHER INFLATION=MONETARY TIGHTENING