Govt to meet fiscal deficit target of 3.4%, says Garg

Economic affairs secretary Subhash Chandra Garg exuded confidence that fiscal deficit target of 3.4% for 2018-19 would be met as shortfall in indirect tax collection would be compensated by lower government expenditure. “I am very confident (of meeting fiscal deficit target of 3.4% for 2018-19),” Garg said.

The government had in Interim Budget 2019 pegged fiscal deficit target of 3.4% for the fiscal year ending 31 March 2019.

“Our assessment at this stage is, in direct taxes, we will probably do as per the revised estimate, indirect taxes, there might be some shortfall, and on the expenditure side there might be some savings. “On the whole, we should be where we are,” he said.

In the current fiscal, direct tax collection is pegged at Rs. 12 trillion (revised estimate).

The government had originally budgeted to collect Rs. 11.50 trillion in 2018-19 from direct taxes, which include corporate tax and personal income tax.

Likewise, in 2018-19, GST collection is pegged at Rs. 6.43 trillion (revised estimate), which is lower than the targeted Rs. 7.43 trillion. On the indirect tax front, customs collection in the current fiscal is pegged at Rs. 1.30 trillion.