Govt expects to meet budget gap target for this fiscal: CEA Anantha Nageswaran

Dr V Anantha Nageswaran, Chief Economic Adviser of India (File photo)

India’s chief economic adviser said on November 7 that the Central government is expected to meet its fiscal deficit target for the current financial year.

“At the moment our expectation is the fiscal deficit target will be met,” V. Anantha Nageswaran said at an event organized by the Indian Chamber of Commerce.

The government is expected to present its budget for the next financial year on February 1, amid expectations that it would continue with its infrastructure spending to boost medium-term growth.

The central government’s fiscal deficit target for this financial year that will end March 31 is 6.4 percent of gross domestic product.

Several economists and rating agencies such as Fitch Ratings expect the target to be missed.

The government's fiscal deficit widened to Rs 6.20 lakh crore in April-September, accounting for 37.3 percent of the full-year target, data released on October 31 showed.

The government aims to narrow the deficit, which has ballooned since the pandemic, to 4.5 percent of GDP by fiscal year 2025-26.