Reclassification helps govt rein in fiscal deficit to 3.4% of GDP in FY18

The total non-tax revenue for 2017-18 was already revised downwards to Rs 2.36 trillion from Rs 2.9 trillion

The Narendra Modi government has had to depend on some smart accounting and expenditure rationalisation to rein in the 2017-18 fiscal deficit at 3.4 per cent of gross domestic product (GDP), lower than the Revised Estimates (RE) of 3.5 per cent.

The official data for the April-March 2017-18 fiscal deficit will be released on May 31. As reported in Business Standard earlier, the Reserve Bank of India (RBI) transferred an additional Rs 100 billion in surplus to the central coffers, and the Food Corporation of India (FCI) returned nearly Rs 500 billion it was allocated to the finance ministry.

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