Economic Survey 2020: Fiscal deficit target may need to be relaxed

The Economic Survey 2020 tabled in the Parliament on January 31 said there may be a need to relax the fiscal gap target for FY20 to revive growth.

"Considering the urgent priority of the Government to revive growth in the economy, the fiscal deficit target may have to be relaxed for the current year," the Survey said.

The Medium Term Fiscal Policy (MTFP) Statement presented with the Budget 2019-20 had pegged the fiscal deficit target for 2019-20 at 3.3 per cent of GDP, which was further expected to follow a gradual path of reduction and attain the targeted level of 3 per cent of GDP in 2020-21, and continue at the same level in 2021-22.

Catch all the latest on the Economic Survey 2020 in our live blog

The Survey also pointed out that FY21 is expected to pose challenges on the fiscal front.

It also talked about the need for counter-cyclical fiscal steps to boost sluggish demand and consumer sentiments.

The Survey estimates the FY21 GDP growth is seen at 6-6.5 percent.

Greater home sales can clean up bank, NBFC balance sheets. Realty companies muse cut home prices to clear unsold inventory, it added.