The government has categorically stated that it does not intend to revise its fiscal deficit target of 3.3% of gross domestic product (GDP) for the current financial year (FY20) despite slowdown in economic activities. Minister of State for Finance Anurag Thakur has said expenditure of various ministries and departments of the government is as per the estimates approved by Parliament.
In the first half of the financial year, 53.4% of Budget Estimates was spent by various ministries and departments. Thakur also pointed out the steps taken by the government to boost economic activities. Besides, the real GDP growth slowed to an over six-year low of 5% in the first quarter of the current financial year.
Besides, the Controller General of Accounts (CGA) in its latest data had showed that India’s fiscal deficit reached nearly 93% of the Budget Estimate (BE) at Rs 6.52 lakh crore in the first half (April-September) of the current fiscal year (2019-20). In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 6,51,554 crore as on September 30, 2019.