Budget 2018: Fiscal deficit number to be close to target of 3.2% of GDP

In what could be the first time for the rail ministry, the finance ministry may cut its GBS by Rs 150 billion

When Finance Minister Arun Jaitley presents the 2018-19 Union Budget on February 1, he may announce a fiscal deficit number for 2017-18 quite close to the target of 3.2 per cent of gross domestic product (GDP) in spite of additional borrowing, higher-than-anticipated spending on flagship schemes, and projected shortfall in the goods and services tax (GST) and spectrum sales.

Accounting for the first Advance Estimates for 2017-18, an additional planned borrowing of Rs 200 billion, the fiscal deficit could come in at 3.35 per cent of GDP. But even that can be negated and the fiscal deficit be brought down to