Govt to get more space, albeit marginal, to contain fiscal deficit

The government leeway to contain the fiscal deficit at 3.5 per cent of gross domestic product (GDP) might be marginal, though the nominal economic growth is projected to be higher than estimated.
 

India’s nominal GDP growth, according to the Advance Estimates released on Friday, was projected at 11.9 per cent for 2016-17 against 11 per cent estimated in the Budget.

Given that the fiscal deficit was pegged at Rs 5.34 lakh crore for 2016-17 in the Budget, the fiscal deficit to GDP ratio will see reduction from 3.54 per cent to 3.51 per cent. At 3.54 per cent, the government