India might achieve 3% fiscal deficit target by 2019-20, says economic affairs secy

Finance minister Arun Jaitley had also announced commitment to the recommendations of the N.K. Singh Committee on fiscal deficit - to reduce the country’s debt-to-GDP ratio to 40% by 2024-25 from the present 49.4% in his budget speech.

India “might actually” be able to reduce its fiscal deficit to 3% of the GDP by 2019-20, ahead of the government’s stated target of achieving it by 2020-2021, Subhash Chandra Garg, economic affairs secretary in the ministry of finance said in a tweet. Last week’s budget announcement revised the Union government’s fiscal deficit target to 3.3% of the GDP for FY19 from the earlier 3%.

Subhash Chandra Garg at a post-budget press conference at National Media Center in New Delhi, India. (Mohd Zakir/HT PHOTO)

In his tweet, Garg said that the government is committed to a strong fiscal consolidation plan. He said, “Fiscal Deficit at 3.3% for 2018-19, backed with statutory commitment to bring it down to 3% by 20-21 (might actually be achieved in 19-20) and further supported with a commitment to bring down debt to GDP ratio to 40% by 2024-25 is truly strong fiscal consolidation plan.”