You are here: Home » Budget » News » Economy
Business Standard

Fiscal deficit pegged at 3.9%; to reach 3% by FY18

s per the earlier roadmap fiscal consolidation, the deficit was to come down to 3 per cent by 2016-17

Press Trust of India  |  New Delhi 

Arun Jaitley
Arun Jaitley - Photo by: Sanjay K Sharma

Finance Minister today pegged fiscal deficit for 2015-16 at 3.9% of and proposed to lower it to 3% by 2017-18, a year later than planned earlier.

Unveiling the roadmap for fiscal consolidation while presenting the 2015-16, he said the 3% fiscal deficit target will now be achieved in three years as against the FRBM target of two years.
Read our full coverage on Union Budget

As per the earlier roadmap fiscal consolidation, the deficit was to come down to 3% by 2016-17.

The Fiscal Responsibility and Management (FRBM) Act will be amendment accordingly, Jaitley said.

"The additional fiscal space will be available for infrastructure funding," he said.

As per the new roadmap, fiscal deficit will be 3.9% of in 2015-16, 3.5% in 2016-17 and 3% by 2017-18.

As regard the current fiscal, Jaitley said the deficit will be 4.1% as budgeted.

"I will meet the challenging target of 4.1% of which we have inherited," he said, adding that the government remains firm on its 3% fiscal deficit target.

The Economic Survey had yesterday said India must adhere to the medium term fiscal deficit target of 3% of the

As regards the Current Account Deficit (CAD), Jaitley said it will be less than 1.3% of

First Published: Sat, February 28 2015. 11:57 IST
RECOMMENDED FOR YOU