Adhering to the fiscal consolidation roadmap, finance minister Arun Jaitley said on Wednesday that the government will target to bring down the fiscal deficit to 3.2% of the GDP in the fiscal 2017-18.
“...I have pegged the fiscal deficit at 3.2% in 2017-18 and remain committed to achieve 3 per cent in the following year. With this gradual approach, I have ensured adherence to fiscal consolidation without compromising requirements of public expenditure,” he said in his Budget speech for 2017-18.
Revenue deficit will be reduced to 2.1% for 2017-18 from 2.3% in the ongoing fiscal, he said.
Net market borrowing would be Rs 3.48 lakh crore in 2017-18 from Rs 4.1 lakh crore (rpt) Rs 4.1 lakh crore in the current fiscal, he said.
FRBM Review Panel headed by former revenue secretary N K Singh had recommended debt to GDP ratio of 60 per cent by 2023 and fiscal deficit at 3% for next 3 years.