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Govt committed to following fiscal deficit glide path, says DEA secretary

Concerns have been raised by different agencies about the ability of the government to meet the fiscal deficit target

Press Trust of India  |  New Delhi 

Atanu Chakraborty
Economic Affairs Secretary Atanu Chakraborty

The on Friday said it was committed to following a glide path to reduce notwithstanding slowdown in the economy impacting revenue collections. The government has budgeted the at 3.3 per cent of the gross domestic product (GDP) for the current financial year, lower from 3.4 per cent in 2018-19.

The government is following a glide path on fiscal deficit, said Economic Affairs Secretary responding to a question in regard to government finances.

According to the budget documents, the government's total expenditure is anticipated to grow at the rate 13.4 per cent, whereas the total non-debt receipts are projected to grow by 14.3 per cent. The government intends to gradually bring down towards the target of 3 per cent of the GDP by March 31, 2021.

The fiscal deficit was 3.5 per cent of GDP during 2017-18 and 2016-17, down from 3.9 per cent in the previous fiscal. The Fiscal Responsibility and Budget Management (FRBM) Rules, 2004, specifies annual targets and mandates the central government to reduce the fiscal deficit by an amount equivalent to 0.1 per cent or more of GDP per year.

Concerns have been raised by different agencies about the ability of the government to meet the for the current financial year ending March 2020 in view of which is impacting revenue collections.

The latest data on goods and services tax collections for October showed that the indirect tax mop-up remained below Rs 1 lakh crore for the third month in a row.

First Published: Fri, November 01 2019. 20:41 IST
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