Fiscal deficit may slip to 3.5-3.8% in FY20; govt set to miss 3.3% target

The FRBM Act, after its amendment in 2018, allows a fiscal deficit slippage of not more than 0.5% for any given year, provided there are justifications

The government is likely to miss its fiscal deficit target for 2019-20 (FY20) and the actual number could be anywhere between 3.5 per cent and 3.8 per cent of gross domestic product (GDP), as against the budgeted 3.3 per cent, top government officials told Business Standard.

A final call on the exact number will be taken by Finance Minister Nirmala Sitharaman and her Budget team after the advance tax numbers are available in mid-December, they said.

“The FRBM (Fiscal Responsibility and Budget Management) Act allows us to slip up to 3.8 per cent of GDP. We are aiming to be