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Budget 2018
Feb 01, 2018 03:08 PM IST | Source: CNBC-TV18

Budget 2018: Key is to maintain FY19 fiscal deficit target of 3.3%, says Rangarajan

So, unless the government ensures that the FY19 fiscal deficit of 3.3 percent is maintained, I think the credibility about the fiscal deficit numbers will go down, says C Rangarajan.

C Rangarajan

Reacting to the news on the fiscal slippage announced by the Finance Minister in the Budget 2018, C Rangarajan, Former, Chairman Of The Economic Advisory Council to The Prime Minister, in an interview to CNBC-Tv18 said the fiscal deficit target for FY18 at 3.5 percent is higher than expected but going forward the credibility of the government will depend upon whether they are able to maintain the 3.3 percent because the expenditures announced are very large.

It is also not clear what percentage of expenditures that have been indicated will actually be translated into actual expenditures.

So, unless the government ensures that the FY19 fiscal deficit of 3.3 percent is maintained, I think the credibility about the fiscal deficit numbers will go down. The government will have to ensure that there is no slippage next fiscal year.

India Union Budget 2018: What does Finance Minister Arun Jaitley have up his sleeve? Click here for live Budget 2018 news, views and analyses.
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