April-February fiscal deficit balloons to Rs 7.16 lakh crore

April-February fiscal deficit balloons to Rs 7.16 lakh crore
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New Delhi, Mar 28: India’s fiscal deficit for the April-February period ballooned to Rs 7.16 lakh crore, which is 120% of the revised target for FY 18.
The government had already breached its fiscal deficit target as it reported 113 per cent deficit till January. Total expenditure for the February period was Rs 19.99 lakh crore and total recepits for the same period stood at Rs 12. 83 lakh crore.
The fiscal deficit target for the current fiscal has been revised at 3.5% from the earlier 3.2 per cent. The target for FY19 has been set at 3.3% making changes to fiscal consolidation glide path.
The government had to revise the fiscal deficit target on account of lower tax collection as the GST collections have dipped from the initial months of its implementation. The non-tax revenue especially the government’s divestment drive has managed to cross its target for the current fiscal.
The government has already accepted the recommendations of the N K Singh-led FRBM panel on fiscal consolidation which aims to bring down government’s combined debt to 60 per cent of the GDP till 2022-23 from 70 per cent currently. It had suggested a glide path to achieve the same recommending to maintain a fiscal deficit target of 3 per cent from FY18 through FY20.