Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: No rating
Article rating: 4.0
Article rating: 3.8
Article rating: 2.9
Article rating: 2.3
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating


Fiscal deficit target for 2017-18 revised to Rs 5.9 lakh cr

Author: IANS/Thursday, February 1, 2018/Categories: Government

Fiscal deficit target for 2017-18 revised to Rs 5.9 lakh cr

New Delhi, Feb 1 - In a significant admission of fiscal slippage with implications for pushing inflation, the government on Thursday revised upwards its fiscal deficit target for 2017-18 to 3.5% of the GDP, or the equivalent of Rs 5.9 lakh crore.

The announcement of a higher target, in place of the 3.2% for the current fiscal announced earlier, was made by Finance Minister Arun Jaitley while presenting the Budget 2018-19 in the Lok Sabha. This is the last full budget of the NDA government before the general elections expected to be held in the first half of 2019. 

"The revised estimate of fiscal deficit for 2017-18 is at Rs 5.9 lakh crore, or at 3.5% (of GDP)," Jaitley said, explaining that a main cause of the fiscal slippage was that indirect tax revenues after the introduction of the Goods and Services Tax were only available for 11 months of the current fiscal.

"There has been a shortfall also in non tax revenue, part of which has been made up by higher direct tax collections and higher disinvestment income this year," he said.

The Finance Minister placed the revised estimate of government expenditure for the fiscal at Rs 21.57 lakh crore against the earlier budget estimate of Rs 21.47 lakh crore. 

The Finance Ministry's Economic Survey 2017-18 authored by Chief Economic Advisor (CEA) Arvind Subramanian released on Monday had said that ambitious targets of fiscal consolidation for the coming pre-election year be avoided, hinting thereby that the target of 3.2% of the GDP could be exceeded.

"Reflecting largely fiscal developments at the Centre, a pause in general government fiscal consolidation relative to 2016-17 cannot be ruled out," said the Survey.

Print Rate this article:
No rating

Number of views (163)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free