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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

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. 

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