Fiscal deficit is a measure of how much the government borrows in a year to meet part of its spending needs.
The Finance Minister Arun Jaitley today revised the fiscal deficit target to 3.5 percent of GDP to Rs 5.95 lakh cr for 2017-18, indicating a deviation from the path of fiscal consolidation.
For the next financial year 2018-19, fiscal deficit target is pegged at 3.3 percent of Gross Domestic Product (GDP), Jaitley said.
Fiscal deficit is a measure of how much the government borrows in a year to meet part of its spending needs.
Fiscal deficit is a measure of how much the government borrows in a year to meet part of its spending needs.
The government had pegged the fiscal deficit target at 3.2 percent GDP for the financial year 2017-18, ensuring adherence to the path of fiscal consolidation, without compromising on public investment. It aims to achieve a target of 3 percent in 2018-19.
The early pick-up in expenditure coupled with shortfall in tax and non-tax revenue exerted pressure on fiscal deficit, which expanded to 112 per cent of budget estimates by November 2017.
The early pick-up in expenditure coupled with shortfall in tax and non-tax revenue exerted pressure on fiscal deficit, which expanded to 112 per cent of budget estimates by November 2017.
An 11-month’s indirect tax collection due to rollout of Goods and Services tax (GST) from July 1, and lesser revenue from telecom spectrum led to overshooting the budgetary target.
However, the government will receive higher revenue from direct tax collection and disinvestment by sale of equity in state-owned companies, including strategic sale, Jaitley said.
However, the government will receive higher revenue from direct tax collection and disinvestment by sale of equity in state-owned companies, including strategic sale, Jaitley said.
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