Major worry for Modi govt as April-Feb fiscal deficit hits 134% of FY19 target

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Updated: March 29, 2019 6:24:52 PM

In a major worry for the Modi government, the April-February fiscal deficit hit Rs 8.51 lakh crore or 134.2 per cent of the budgeted target for FY19, government data showed.

Direct tax collection falls short, CBDT raises alarmIn the annual budget for FY20, the government had revised the fiscal deficit upward to 3.4 per cent of GDP for the running fiscal.

In a major worry for the Modi government, the April-February fiscal deficit hit Rs 8.51 lakh crore or 134.2 per cent of the budgeted target for FY19, government data showed.

In the annual budget for FY20, the government had revised the fiscal deficit upward to 3.4 per cent of GDP for the running fiscal. The government had previously estimated the deficit at 3.3 per cent of the budgeted target.

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The economic affairs secreatry Subhash Chandra Garg assured that the government will stick to the fiscal deficit target of 3.4 per cent of the GDP for FY19. In the budget, the fiscal deficit target for 2019-20 was retained at 3.4 per cent of the GDP.

Meanwhile, the current account deficit (CAD) also increased to 2.5 per cent in Q3FY19 compared to the same period a year ago on account of higher trade deficit, RBI data showed. The deficit increased to $16.9 billion from $13.7 billion or 2.1 per cent in Q3FY18, even as it moderated from $19.1billion ir 2.9 per cent in the preceding quarter.

The trade deficit widened to $49.5 billion as against $44 billion a year ago, the central bank data showed. Net services receipts surged by 2.8 per cent on year basis largely led by a rise in net earnings from telecommunications, computer and information services and financial services.

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