70th Day Of Lockdown

Maharashtra70013301082362 Tamil Nadu2349513170187 Delhi208348746523 Gujarat17217107801063 Rajasthan91006213199 Uttar Pradesh83615030222 Madhya Pradesh82835003358 West Bengal57722306325 Bihar3945174123 Andhra Pradesh3676237464 Karnataka3408132852 Telangana2792149188 Jammu and Kashmir260194631 Haryana2356105521 Punjab2301200044 Odisha210412459 Assam14862854 Kerala132760811 Uttarakhand9592225 Jharkhand6612965 Chhatisgarh5481211 Tripura4231730 Himachal Pradesh3401186 Chandigarh2972144 Manipur83110 Puducherry79250 Goa73500 Nagaland4300 Meghalaya28121 Arunachal Pradesh2010 Mizoram110 Sikkim100
Business Economy 01 Feb 2020 Fiscal deficit targe ...

Fiscal deficit target raised to 3.8 pc from 3.3 pc for FY20

PTI
Published Feb 1, 2020, 2:48 pm IST
Updated Feb 1, 2020, 2:48 pm IST
This fiscal path commits us to the path of fiscal consolidation without compromising the needs of investment out of public funds.
The 'escape clause' allows the government to breach its fiscal deficit target by 0.5 percentage points at times of severe stress in the economy
 The 'escape clause' allows the government to breach its fiscal deficit target by 0.5 percentage points at times of severe stress in the economy

New Delhi: The government on Saturday raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent pegged earlier for 2019-20 due to revenue shortage.

"We estimate a fiscal deficit of 3.8 per cent in RE (revised estimate) 2019-20 and 3.5 per cent for BE (budget estimate) 2020-21. This estimation is consistent with Government's abiding commitment to macroeconomic stability," Finance Minister Nirmala Sitharaman said while presenting Budget 2020-21.

 

The government has utilised 'escape clause' under the Fiscal Responsibility and Budget Management (FRBM) Act which provides it leeway for relaxation of fiscal deficit roadmap during time of stress.

"Section 4 (2) of the FRBM Act provides for a trigger mechanism for a deviation from the estimated fiscal deficit on account of structural reforms in the economy with unanticipated fiscal implications. Therefore, I have taken a deviation of 0.5 per cent, consistent with Section 4(3) of FRBM Act, both for RE 2019-20 and BE 2020-21," she said.

The 'escape clause' allows the government to breach its fiscal deficit target by 0.5 percentage points at times of severe stress in the economy, including periods of structural change and those when growth falls sharply.

"Accordingly, the return path is being laid before Parliament as a part of Medium Term Fiscal Policy cum Strategy Statement. This fiscal path commits us to the path of fiscal consolidation without compromising the needs of investment out of public funds," she said.

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT