Government revises Fiscal defecit target to 3.3 % for 2018-19

New Delhi Feb 2: Finance minister Arun Jaitley on Thursday has presented the budget.The FM has also modified the Fiscal deficit target for the coming years and has accepted the comitee report setup on reviewing FRBM act.

Jaitley has said that "In 2017-18, Central Government will be receiving GST revenues only for 11 months, instead of 12 months. This will have a fiscal effect.There has also been some shortfall in Non-Tax revenues on account of certain developments, including deferment of spectrum auction. A part of this shortfall has been made up through higher direct tax revenues and bigger disinvestment receipts."

He added that "Revised Fiscal Deficit estimates for 2017-18 are Rs.5.95 lakh crore at 3.5% of GDP. I am projecting a Fiscal Deficit of 3.3% of GDP for the year 2018-19."

"In order to impart unquestionable credibility to the Government's commitment for the revised fiscal glide path, I am proposing to accept key recommendations of the Fiscal Reform and Budget Management Committee relating to the adoption of the Debt Rule and to bring down Central Government’s Debt to GDP ratio to 40%.The government has also accepted the recommendation to use Fiscal Deficit target as the key operational parameter." Jaitley added.