Economic affairs secretary Subhash Chandra Garg on Saturday exuded confidence that 2018-19 will end with a fiscal deficit of 3.3 per cent of the GDP, marginally lower than the revised estimate of 3.4 per cent for the year.
He also said the government has maintained the glide path towards achieving the fiscal deficit target of 3 per cent by 2020-21 and eliminate primary deficit.
“Deviations which have happened in the last two years are very nominal. Second, these don’t go beyond the trend of the glide path... this year it was to be 3.3 per cent, it has been 3.4 per cent which is lower than 3.5 per cent. We might actually end the year with 3.3 per cent and stick to the budget estimate,” Garg said.
“So, the path leads to 3 per cent by 2020-21. The adjustment required is 0.3 per cent or 0.4 per cent. I think we can credibly do it in 2020-21. I think we have no plans to revise it (Fiscal Responsibility and Budget Management Act),” he added.
According to the interim budget tabled in Parliament on Friday, the government has projected a fiscal deficit target of 3.4 for the next financial year 2019-20.
The government on Friday came out with a road map to reduce the fiscal deficit, the gap between the total expenditure and revenue, to 3 per cent of the GDP by 2020-21, and eliminate primary deficit.