Reasons for the sudden and steady rise in Fiscal deficit in India after 2008 till 2013

Cauliflower

We find that after the implementation of FRBM Act, 2003, India could reduce Fiscal Deficit (FD) from 2003 till 2007 but from 2008, there is a steady rise in FD. What are the reasons for the increasing trend in FD from 2008 till 2013? Is it a result of 2008 Financial crisis? or any other Supply or Demand Shocks?

P.S: I suppose there is no change in the Government policies during this period as NDA(old) and UPA regimes both being pro- subsidies and advocated social security schemes (mostly unproductive ones). Please correct, If I am wrong.

Thor

The huge amount of excise cuts and supportive measures, deteriorating tax buoyancy, illogical social spending and more importantly ever rising revenue costs due to pay commission.

Added to that monetary policies to stymie inflation choked the growth engine. inflation was imported and inelastic, yet we tried the traditional way.