Fiscal correction

Govt should not delay the consolidation process

The Union government is targeting to contain the fiscal deficit at 6.8 per cent of gross domestic product (GDP) this fiscal year, which will be a steep reduction from last fiscal year’s 9.3 per cent. While tax collection in the current year has surprised on the upside, it is being suggested that the government may not be able to attain the target largely because of higher than expected expenditure under different heads and lower disinvestment receipts. Further, as this newspaper reported on Monday, the government is considering not to significantly reduce the fiscal deficit in 2022-23, and keep the target