Finance minister Piyush Goyal (PTI)
Finance minister Piyush Goyal (PTI)

Budget 2019: Slight slippage in fiscal deficit target, says Piyush Goyal

  • The revised estimate of fiscal deficit stands at 3.4% of GDP against the budget estimate of 3.3%
  • Lower than expected GST collections and tardy progress in the disinvestment process are considered to be the main reasons for the miss in the fiscal deficit

The Narendra Modi government has proposed to revise upward its fiscal deficit target of 3.1% of GDP for 2019-20 to 3.4% of GDP after breaching the fiscal targets for the second consecutive year in 2018-19.

Presenting the last budget of the government before the general elections, finance minister Piyush Goyal said the government could have easily achieved the fiscal deficit targets in 2018-19 and 2019-20, but for the additional allocation of 20,000 crore and 75,000 crore, respectively, for the PM-Kisan scheme.

For 2018-19, the revised estimate of fiscal deficit stands at 3.4% of GDP against the budget estimate of 3.3%.

Lower than expected GST collections and tardy progress in the disinvestment process are considered to be the main reasons for the miss in the fiscal deficit target in 2018-19.

According to Controller General of Accounts (CGA) data up to November 2018, the fiscal deficit in the first eight months stood at 114.8% of the full-year target against 112% during the same period a year ago.

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