Fiscal deficit target must be realistic and credible: ICRA

The government's Mid Year Economic Review, released last week, had said the government should consider revising fiscal year 2017's fiscal deficit target from 3.5 percent currently -- with media reports pegging the new target at 3.7 or 3.9 percent.The reason for the fiscal deficit target coming under challenge is because of One Rank One Pension (OROP) and the 7th Pay Commission both coming into effect in the next fiscal, says Aditi Nayar, Senior Economist, ICRA."Given the challenges, it would be preferable to have a somewhat relaxed target; certainly, having a clearly achievable target would be better than sticking to a target that is not achievable," she told CNBC-TV18 in an interview.Watch video for more