Economic affairs secretary Subhash Chandra Garg. (Pradeep Gaur/Mint)
Economic affairs secretary Subhash Chandra Garg. (Pradeep Gaur/Mint)

Govt will meet fiscal deficit target of 3.4% in FY19: Subhash Chandra Garg

  • Shortfall in indirect tax collection would be compensated by lower government expenditure, says the economic affairs secretary
  • The government had in Interim Budget 2019 pegged fiscal deficit target of 3.4% for the fiscal year ending 31 March 2019

Delhi: Economic affairs secretary Subhash Chandra Garg on Friday exuded confidence that fiscal deficit target of 3.4% for 2018-19 would be met as shortfall in indirect tax collection would be compensated by lower government expenditure. "I am very confident (of meeting fiscal deficit target of 3.4% for 2018-19)," Garg said on the sidelines of IVCA conference in New Delhi.

The government had in Interim Budget 2019 pegged fiscal deficit target of 3.4% for the fiscal year ending 31 March 2019.

"Our assessment at this stage is, in direct taxes, we will probably do as per the revised estimate, indirect taxes, there might be some shortfall, and on the expenditure side there might be some savings. "On the whole, we should be where we are," he said.

In the current fiscal, direct tax collection is pegged at 12 trillion (revised estimate).

The government had originally budgeted to collect 11.50 trillion in 2018-19 from direct taxes, which include corporate tax and personal income tax.

Likewise, in 2018-19, GST collection is pegged at 6.43 trillion (revised estimate), which is lower than the targeted 7.43 trillion. On the indirect tax front, customs collection in the current fiscal is pegged at 1.30 trillion.

Fiscal deficit touched 121.5% of the full-year revised target of 6.34 trillion at the end of January on account of lower revenue collection, according to recent data released by the Controller General of Accounts (CGA). PTI BKS BKS ANU ANU

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