Fiscal deficit to be 3.3 per cent of the GDP for the coming fiscal year, says FM Jaitley
New Delhi, Feb 1 (IBNS): Union Finance Minister Arun Jaitley, while presenting the General Budget for 2018-19 in Parliament on Thursday, said that this Budget reflects the government’s commitment to substantially boost investment in agriculture, social sector, digital payments, infrastructure and employment generation while simultaneously sticking to the path of fiscal rectitude.
Jaitley said that the Central government’s commitment is substantiated by increase in expenditure of Rs 2,24,463 crores over Revised Estimate 2017-18 (RE 2017-18).
He said the aim is for a reduction of Fiscal Deficit by 0.2 per cent of GDP over RE 2017-18.
He projected a Fiscal Deficit of 3.3 per cent of GDP for 2018-19.
Arun Jaitley said that the present Government assumed office in May, 2014 when fiscal deficit was running at very high levels. Fiscal Deficit for 2013-14 was 4.4% of GDP.
He said that the present Government has embarked on the path of consistent fiscal reduction and consolidation in 2014.
Fiscal Deficit was brought down to 4.1% in 2014-15 to 3.9% in 2015-16, and to 3.5% in 2016-17. Revised Fiscal Deficit estimates for 2017-18 are Rs. 5.95 lakh crore at 3.5% of GDP.
The Finance Minister said that he was proposing to accept key recommendations of the Fiscal Reform and Budget Management (FRBM) Committee relating to adoption of the Debt Rule and to bring down the 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 and necessary amendment proposals are included in the Finance Bill, he pointed out.
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