Budget 2018: Avoid ambitious fiscal deficit targets, says Economic Survey

Says market concerns over additional borrowings incorrect

Chief Economic Advisor Arvind Subramanian and his team did not rule out a Union fiscal deficit wider than the targeted 3.2 per cent of gross domestic product (GDP) for the current financial year (FY18).

  

Ahead of the Budget for 2018-19, the Economic Survey for 2017-18 said that ambitious targets of fiscal consolidation for the coming pre-election year be avoided. Does that mean the target of 3.2 per cent for the next year, given in the medium-term fiscal policy statement, is ambitious? The Survey did not go into that.