Adhia further explained that exceeding the budgeted target for direct tax collection, certain 'off-budget funding of projects, as well as no major expenditure cut is an indication of the path towards meeting the target
The government in its budget last month announced a fiscal deficit target of 3.3 percent of the gross domestic product for 2018/19 fiscal year starting April, higher than its previous target of 3.0 percent.
"Economic theory suggests that larger budget deficits lead to higher inflation as more Government spending (if this spending is not directed towards the creation of productive assets) leads to an increase in the overall price level," says Saurabh Mukherjea is the CEO of Ambit Capital.
According to the global financial services major, while the budgeted deficit is in line with expectations, the revenue targets are on the optimistic side, particularly on recently- introduced GST tax revenue growth.
"Fiscal Deficit at 3.3 percent for 2018-19, backed with statutory commitment to bring it down to 3 percent by 20-21 (might actually be achieved in 19-20) ..." Subhash Chandra Garg, the economic affairs secretary in the finance ministry, said in a Tweet.
The rupee today extended its losses for the second straight session, weakening by 4 paise at 64.06 a dollar as forex traders appeared cautious in view of upward revision of fiscal deficit target and the net borrowing for the current fiscal in yesterday's Union Budget.
The UK India Business Council (UKIBC) today welcomed the Budget proposals and said that the government's Rs 80,000 crore disinvestment and 3.3 per cent of fiscal deficit targets for 2018-19 are achievable.
Experts attribute this huge fall on the back of several factors, including announcements made in the Union Budget. The levy of long term capital gains tax (LTCG), along with slippage on the fiscal deficit side and rising bond yields dragged indices lower.
In an interview with CNBC-TV18's Rajnish Kumar, Chairman of State Bank of India (SBI) gave his take on Arun Jaitley's Union Budget, his outlook on the road ahead as well as what is happening with the 10-year yield.
In an interview with CNBC-TV18's Shereen Bhan, William Foster, VP-Sovereign Risk Group at Moody's Investors Service, Ravi Bhatia, Director-Sovereign Ratings at S&P Ratings Services, Sumant Sinha, Chairman & CEO of ReNew Power, Neelkanth Mishra, MD & India Equity Strategist of Credit Suisse, Shaktikanta Das, Member of 15th Finance Commission, Ajay Dua, Former Secretary o
"Directionally, this Budget will not have much impact on the equity market, it will move largely on relative valuation and earnings growth in FY19," says Shailendra Kumar, CIO at Narnolia Securities Limited.