Fiscal deficit to be contained at 3.2% in FY18, says Jaitley

Revenue deficit will be reduced to 2.1% for 2017-18 from 2.3% in the ongoing financial year, he said

Adhering to fiscal consolidation roadmap, Finance Minister Arun Jaitley on Wednesday said the government will target to bring down the fiscal deficit to 3.2 per cent of the GDP in the financial year 2017-18.

"...I have pegged the fiscal deficit at 3.2 per cent in 2017-18 and remain committed to achieve 3 per cent in the following year. With this gradual approach, I have ensured adherence to fiscal consolidation without compromising requirements of public expenditure," he said in his Budget speech for 2017-18.

Revenue deficit will be reduced to 2.1 per cent for 2017-18 from 2.3 per cent in the ongoing financial year, he said.

Net market borrowing would be Rs 3.48 lakh crore in 2017-18 from 4.1 per cent in the current financial year, he said.

FRBM Review Panel headed by former revenue secretary NK Singh had recommended debt to GDP ratio of 60 per cent by 2023 and fiscal deficit at 3 per cent for next three years.