The fiscal deficit stood at Rs 3.37 lakh crore in the five months through August 2012, showed the data released by Controller General of Accounts (CGA) on Friday

The government has targeted a fiscal deficit of Rs 5.14 trillion or 5.1% of the gross domestic product (GDP) for the current fiscal year.

The reports came after finance ministry said that government would not let the fiscal deficit dip beyond 5.1% in current fiscal.

The government recently raised the price of diesel and also put a cap of the use of LPG cylinders to help the OMCs cut their losses. Kelkar report which warned that fiscal deficit could touch 6.1% if subsidies not rolled back completely.

A country is said to have a fiscal deficit when the government's expenditure exceeds it's income. This happens, the government needs additional funds.

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