New Delhi: Arvind Virmani, the Chief Economic Adviser said that India will miss its fiscal deficit target by a wide margin and the deficit will increase to at least 5 per cent of GDP this fiscal. This is due to the stimulus package announced by the government to spur demand in the economy.We already have a very substantial stimulus package this year.
Two per cent is the fiscal deficit expansion", Chief Economic Adviser Arvind Virmani told reporters after the Mid-Year Review of the economy was tabled in Parliament. He however also said the government had, in the Budget, targeted fiscal deficit to come down to 2.5 per cent of GDP this fiscal, although it was 3 per cent under the Fiscal Responsibility and Budget Management Act. For the entire fiscal till October, the Fiscal deficit has already touched 87.8 per cent of the target.
The government recently gave a nod towards Rs 42,480 crores additional expenditure during the current financial year. Apart from this, it also gave a 4 per cent excise duty cut across the board. The government however has already sought an additional Rs 1,47,000 crore from the Parliament, as the first and second batch of supplementary demands for grants, raising public spending to Rs 9,00,000 crore.
Two per cent is the fiscal deficit expansion", Chief Economic Adviser Arvind Virmani told reporters after the Mid-Year Review of the economy was tabled in Parliament. He however also said the government had, in the Budget, targeted fiscal deficit to come down to 2.5 per cent of GDP this fiscal, although it was 3 per cent under the Fiscal Responsibility and Budget Management Act. For the entire fiscal till October, the Fiscal deficit has already touched 87.8 per cent of the target.
The government recently gave a nod towards Rs 42,480 crores additional expenditure during the current financial year. Apart from this, it also gave a 4 per cent excise duty cut across the board. The government however has already sought an additional Rs 1,47,000 crore from the Parliament, as the first and second batch of supplementary demands for grants, raising public spending to Rs 9,00,000 crore.
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