You are here: Home » Budget » News » Economy
Business Standard

Fiscal deficit pegged at 3.9%; to reach 3% by FY18

s per the earlier roadmap fiscal consolidation, the deficit was to come down to 3 per cent by 2016-17

Press Trust of India  |  New Delhi 

Arun Jaitley
Arun Jaitley - Photo by: Sanjay K Sharma

Finance Minister Arun Jaitley today pegged fiscal deficit for 2015-16 at 3.9% of GDP and proposed to lower it to 3% by 2017-18, a year later than planned earlier.

Unveiling the roadmap for fiscal consolidation while presenting the 2015-16, he said the 3% fiscal deficit target will now be achieved in three years as against the FRBM target of two years..

Read our full coverage on Union Budget

As per the earlier roadmap fiscal consolidation, the deficit was to come down to 3% by 2016-17.

The Fiscal Responsibility and Management (FRBM) Act will be amendment accordingly, Jaitley said.

"The additional fiscal space will be available for infrastructure funding," he said.

As per the new roadmap, fiscal deficit will be 3.9% of GDP in 2015-16, 3.5% in 2016-17 and 3% by 2017-18.

As regard the current fiscal, Jaitley said the deficit will be 4.1% as budgeted.

"I will meet the challenging target of 4.1% of GDP which we have inherited," he said, adding that the government remains firm on its 3% fiscal deficit target.

The Economic Survey had yesterday said India must adhere to the medium term fiscal deficit target of 3% of the GDP.

As regards the Current Account Deficit (CAD), Jaitley said it will be less than 1.3% of GDP.

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, February 28 2015. 11:57 IST