Some facts
Greece
Budget deficit : 10.6 % of GDP ,2010
Public Debt : 144% of GDP,2010
India
Budget deficit: approx 0.056 % of GDP , 2010
Public debt : 71.4% of GDP
India hasn't started spending cuts yet.
I can't find the 2010 data but this article should give you a hint:
“India's overall deficit in FY11-12 likely to be at 8.6% of GDP: Macquarie
October 31, 2011 08:28 AM | Bookmark and Share
Moneylife Digital Team
According to global research firm Macquarie, consolidated fiscal deficit of the country including off-budget items like food, oil and fertiliser is likely to be around 8.6% amid slowing revenue growth and “lack of expenditure management by the government”
New Delhi: India’s combined fiscal deficit—of both the Centre and states—during 2011-12 could be as high as 8.6% of the gross domestic product (GDP) and any further slippage could risk a credit downgrade and loss of business confidence, reports PTI.
According to global research firm Macquarie, consolidated fiscal deficit of the country including off-budget items like food, oil and fertiliser is likely to be around 8.6% amid slowing revenue growth and “lack of expenditure management by the government”.
Macquarie further warned the country’s fiscal deficit already remained high and any further slippage can increase the risk of “credit rating downgrade and loss of business confidence”. It said the Indian government needs to adhere to the path of fiscal correction.
“We believe that the government needs to stick to its commitment of fiscal consolidation and curtail expenditure growth to create a room for private investments,” the report said.
The overall fiscal deficit in financial year 2010-11, excluding the third generation (3G) spectrum receipts stood at 9%, it said.
“This, in an environment of weak global capital markets, could result in higher cost of capital and further crowding out of private investments and thus slower growth,” it said.
Moreover, high fiscal deficit is also the main culprit responsible for high inflation, Macquarie said.
Empirical estimates suggest that a 1% increase in level of fiscal deficit could cause about a quarter of a percentage point increase in the WPI.
Inflation has remained above the RBI’s comfort zone of 5%-5.5% over the last 22 months and has averaged over 9% during this period.
As per the report, the states’ fiscal deficit, excluding the huge losses of state electricity boards (SEBs), is likely to improve from 2.8% of GDP in FY09-10 to 2.3% of GDP in FY11-12.
However, after incorporating the SEBs losses, fiscal deficit of states would widen from 2.3% of GDP to 3% of GDP in FY11-12, Macquarie said.
India’s consolidated fiscal deficit more than doubled from 4.8% of GDP in FY 07-08 to 10% of GDP in FY08-09. In FY10-11, it was 9% of GDP if revenue from allocation of telecom licence and Broadband Wireless Access (BWA) spectrum is excluded.
Before the credit crisis, India managed to achieve a consolidated deficit level of 4.8% of GDP in FY07-08, the lowest in the past two decades, largely owing to buoyant tax collection growth.
During the credit crisis, the government pursued an expansionary fiscal policy to raise domestic demand and hence there was a slowdown and a widening fiscal deficit, it said.
Besides, populist measures like—wage hikes for central government employees, pre-election spending, farm loan waivers and expansion of social security schemes like rural employment —were announced ahead of parliamentary elections in May 2009, further deteriorating the fiscal condition, Macquarie said.
“India's overall deficit in FY11-12 likely to be at 8.6% of GDP: Macquarie -
