New Delhi: Finance minister Piyush Goyal has said India will be able to restrict the fiscal deficit below the budgeted level of 3.3% of GDP in 2018-19, which has hit 55% of the annual target in the first two months of the financial year.
He said the revenues from goods and services tax (GST) in the current fiscal is expected to exceed Rs13 trillion as the full benefits of electronic way or e-way bill starts flowing in.
“There is a perception that fiscal deficit will not be met, but I feel, that we will actually do better than our budgeted fiscal deficit," Goyal told reporters here.
The government has budgeted to contain fiscal deficit at 3.3% of GDP in current financial year which began in April, lower than 3.53% in 2017-18 fiscal.
Fiscal deficit, which is the difference between revenue and expenditure, stood at Rs3.45 trillion during the April-May period, or 55.3% of the budgeted target for the fiscal year 2018-19.
In the April-May period of 2017-18, fiscal deficit was 68.3% of the budget estimate.
“By the time the year ends, GST revenues would cross Rs13 lakh crore. We have not yet got the full benefits of e-way bill. So I feel there will be more improvement in revenues and some relief in taxes can be given," Goyal said.
In the first year of GST in 2017-18, the government earned Rs7.41 trillion from the tax since its rollout in July. The average monthly collection was Rs89,885 crore. In the current fiscal, the collections in April touched a record Rs1.03 trillion, followed by Rs94,016 crore in May and Rs95,610 crore in June.