ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Economic Survey: Coming year may pose challenges on fiscal front, but 3% deficit target achievable in FY21

Economic Survey: For FY19, the government had pegged fiscal deficit target of 3.4% of GDP. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Economic Survey: Coming year may pose challenges on fiscal front, but 3% deficit target achievable in FY21
Just a day before the final budget 2019 announcement, the Ministry of Finance released the Economic Survey for 2018-19. Photo: Pixabay

Just a day before the final budget 2019 announcement, the Ministry of Finance released the Economic Survey for 2018-19, where it pointed out that several challenges face India's on the fiscal front. However, a ray of hope was also highlighted, as the government will be able to achieve its fiscal deficit target of 3% of GDP by FY20-21. Data released by controller general of accounts revealed that India's fiscal deficit came in at Rs 3.66 trillion already in the first two months of FY20, which has clocked 52% of full-year budget target. For FY19, the government had pegged fiscal deficit target of 3.4% of GDP. 

According to the survey, the revised fiscal glide path envisages achieving fiscal deficit of 3 per cent of GDP by FY 2020-21 and Central Government debt to 40 per cent of GDP by 2024-25. The Survey notes the Medium Term Fiscal Policy Statement presented along with the Union Budget 2018-19 aimed to reach the fiscal deficit target of 3.3 per cent of GDP in 2018-19 BE. 

The survey said, "The FY 2018-19 has ended with fiscal deficit at 3.4 per cent of GDP and debt to GDP ratio of 44.5 per cent (Provisional). As per cent of GDP, total Central Government expenditure fell by 0.3 percentage points in 2018-19 PA over 2017-18, with 0.4 percentage point’s reduction in revenue expenditure and 0.1 percentage point increase in capital expenditure. With respect to States finances, their own tax and non-tax revenue display robust growth in 2017-18 RE which is envisaged to be maintained in 2018-19 BE."

Cautioning, the economic survey says, " the coming year will pose several challenges on the fiscal front."

Firstly, there are apprehensions of slowing of growth, which will have implications for revenue collections. Secondly, the financial year 2018-19 has ended with shortfall in GST collections. Therefore, revenue buoyancy of GST will be key to improved resource position of both Central and State Governments. 

Thirdly, resources for now expanded Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and Ayushmaan Bharat, as well as new initiatives of the new Government, will have to be found without compromising the fiscal deficit target as per the revised glide path. 

Also, US sanctions on oil import from Iran is likely to have impact on oil prices and thereby on the petroleum subsidy, apart from implications for current account balances.

Finally, Fifteenth Finance Commission will submit its report for next five years beginning April 2020. Its recommendation especially on tax devolution will have implications for Central Government finances. 

“Broadening and deepening the direct tax base and stabilization of Goods and Services Tax are the other priorities. Improving the quality of expenditure remains the key priority. Meeting allocational requirements without diversion from the newly revised fiscal glide path remains the foremost challenge. Despite several headwinds, Indian economy is expected to grow at 6.8 per cent (as per provisional estimates released by Central Statistics Office) in 2018-19 while maintaining macro-economic stability. The growth with macro-stability stems mainly from ongoing structural reform, fiscal discipline, efficient delivery of services and financial inclusion”, says the Survey. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economic Surveyfiscal deficitfiscal deficit targetIndian economyNirmala SitharamanBudget 2019Budget 2019 expectations
Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Thu, Jul 04, 2019
03:00 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Credit growth likely to be brisk in FY24 if inflation moderates, cost of credit remains low: Survey Credit growth likely to be brisk in FY24 if inflation moderates, cost of credit remains low: Survey
India’s current account deficit may widen, need to closely monitor: Economic Survey India’s current account deficit may widen, need to closely monitor: Economic Survey
Economic Survey 2023: 6.8% inflation not too high to deter private consumption, or weaken inducement to invest Economic Survey 2023: 6.8% inflation not too high to deter private consumption, or weaken inducement to invest
Economic Survey 2023: Interest rate hike by US Fed to trigger further weakness in Rupee versus Dollar Economic Survey 2023: Interest rate hike by US Fed to trigger further weakness in Rupee versus Dollar
Budget 2023: What is the Economic Survey of India and when is it presented? All you need to know Budget 2023: What is the Economic Survey of India and when is it presented? All you need to know

LATEST NEWS

ICICI Bank hikes fixed deposit interest rate by 1.5%

Bed Bath and Beyond share price crashes 48% - here's why

Aero India 2023 - Check Dates, Schedule, Timing, Venue, Ticket prices, How to buy and Participants details

Gold Price Today (February 8): Yellow metal gains as US dollar retreats on Powell's less-hawkish stance - Check rate in Delhi, Mumbai and other cities

GST on cement: FM Nirmala Sitharaman makes big statement

iPhone 15 Pro Max: Apple to use 2,500 nits display panel from Samsung

eBay layoffs 2023: E-commerce giant to cut 500 jobs

BONUS STOCK: This large cap company fixes record date; check ratio

RBI Policy: Shaktikanta Das delivers 6th back-to-back rate hike; inflation, GDP projections tweaked

PhonePe launches international UPI service: Users can now make payments in these 5 countries

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV