Fiscal deficit slippage is due to shortfall of GST revenue of one month: FM

Direct tax collections are up 19.3% in April-January period as a result of the campaign against black money, GST, says Jaitley

Finance Minister Arun Jaitley said in Rajya Sabha on Friday that fiscal deficit slippage is 'statistical' because it is primarily due to a shortfall of GST revenue of one month in current fiscal.

He said that Modi government has allocated Rs 550 billion for MNREGA and Rs 1.7 trillion for food subsidy and that spend on rural roads has risen manifold.

Speaking of economic performance, he said, "GDP growth in 2012-13 was 5.3% and 6.3% in following year under Congress, compared to 5.7% in one quarter under BJP." 

"UPA had an unacceptable level of current account deficit but under BJP rule it has been less than 1%," he said.

"We have covered journey from policy paralysis to structural reforms and from an economy being among 'fragile five' to 'bright spot'," Jaitley added.

The FM was confident that GST collections will increase as anti-evasion measures are added to the indirect tax regime.

"Tax net has widened, direct tax collections are up 19.3% in April-January period as a result of the campaign against black money, GST," Jaitley said.

"Bringing down corporate tax to 25% for all companies would hit tax revenue by Rs 450-500 billion, which Budget can't afford now," said Jaitley.