Opinion | The government may be faced with a big dilemma in 2020-21
The Centre could either roll back some investment plans or further slash its consumption outlays
The Union budget has set a fiscal deficit target of 3.5% of gross domestic product (GDP) in 2020-21, as against 3.8% in 2019-20. The target overshoots the 3% level mandated under the Fiscal Responsibility and Budget Management (FRBM) Act by 0.5 percentage points. Is this, then, a stimulative budget set against the background of falling growth? And, is the target realistic?