Expenditure worries: The fiscal road ahead could get bumpy

Greater clarity and caution from the finance ministry is needed

The first quarter of the current financial year is almost over, and the fiscal signs are not propitious. In the Union Budget for 2018-19, the government postponed the path of fiscal consolidation. The previous year’s fiscal deficit target had been breached; this year’s target was set at 3.3 per cent, as opposed to the 3 per cent recommended by the fiscal consolidation path. There are now very real reasons to worry about even this number. It is true that collections from indirect taxes following the introduction of the goods and services tax (GST) last year appear to have stabilised, providing