You are here: Home » Economy & Policy » News » GST
Business Standard

Govt to meet fiscal deficit target of 3.3% despite GST rate cut: Jaitley

As per the latest data, the fiscal deficit in the April-October period stood at 103.9% of Budget estimates

Gst Council Meeting  |  Gst Meeting  |  Gst Rate Cut

Press Trust of India  |  New Delhi 

Union Finance Minister Arun Jaitley addresses a press conference after the 'Annual Review Meeting with Public Sector Banks', in New Delhi, Tuesday (Photo: PTI)
Union Finance Minister Arun Jaitley. File photo: PTI

Finance Minister on Saturday expressed confidence of meeting the target of 3.3 per cent of GDP for the current fiscal despite revenue loss due to the reduction in GST rates. 

The GST Council, headed by the finance minister, in its 31st meeting on Saturday decided to cut rates on 23 commonly used goods and services, which will lead to an annual revenue loss of Rs 55 billion. 

"At the stage, when we are looking at the (revenue) target, indirect is little behind the scheduled direct tax, the direct is ahead of schedule. Our non-revenue also seems to be moving ahead fairly well. At the moment, the government is quite optimistic that we will be able to meet target," he said after the here.

The government has budgeted to contain at 3.3 per cent of the GDP in the current fiscal, lower than 3.5 per cent in 2017-18.

As per the latest data, the fiscal deficit in the April-October period stood at 103.9 per cent of budget estimates.  

Dispelling fears of a major impact on revenue collection, Revenue Secretary Ajay Bhushan Pandey said that the loss of Rs 55 billion is for the entire fiscal, so for the three months it would be one-fourth of this.

This shortfall would be more than met by measures to improve tax compliance through various means, he added. 

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, December 22 2018. 18:00 IST