NEW DELHI (17th Oct, 2019): India is likely to miss its fiscal deficit target of 3.3% of gross domestic product (GDP) for financial year 2019.
The government of India is now trying its best to cap the fiscal deficit for 2019/20 at 3.8% of Gross Domestic Product from the target set during the budget presentation in July 2019.
The BJP government is also likely to delay lowering the fiscal deficit to 3% of GDP by a year to 2021/22.
These details have been given by two unnamed officials of Indian Government to media.
In trying to revive financial growth from its 5% in the May-July quarter, the BJP government cut corporate tax that was expected to result in revenue loss of 1.5 trillion rupees ($21 billion).
India’s economy grew at its slowest pace since 2013 between April and June as consumer demand and government spending slowed amid global trade frictions.
Finance Minister of BJP Government Nirmala Sitharaman has said she will relook the fiscal calculations before the next budget in February before announcing the fiscal deficit target for the year 2020.
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