Govt mulls primary deficit targets for new FRBM road map

FRBM panel recommended fiscal deficit target of 2.5% of GDP, revenue deficit of 0.8% for 2022-23

The finance ministry, which is discussing the recommendations of the Fiscal Responsibility and Budget Management (FRBM) committee, could possibly include the suggestions of Chief Economic Advisor Arvind Subramanian on primary deficit in the government’s deficit targets for six years till 2022-23.

The FRBM panel has recommended a fiscal deficit target of 2.5 per cent of gross domestic product, revenue deficit of 0.8 per cent and a combined Centre-state debt ceiling of 60 per cent for fiscal year 2022-23, the end point of its six-year medium-term fiscal road map. Other recommendations include setting up of a fiscal council and giving the