Govt achieves targeted 4.1% fiscal deficit, eyes 3.9% in FY16
1 March 2015 12:56 AM GMT
Unveiling the roadmap for fiscal consolidation while presenting the Budget 2015-16, he said the 3 per
cent fiscal deficit target will now be achieved in three years as against the FRBM target of two years.
As per the earlier roadmap fiscal consolidation, the deficit was to come down to 3 per cent by 2016-17. The Fiscal Responsibility and Budget Management (FRBM) Act will be amendment accordingly, Jaitley said.
"The additional fiscal space will be available for infrastructure funding," he said. As per the new roadmap, fiscal deficit will be 3.9 per cent of GDP in 2015-16, 3.5 per cent in 2016-17 and 3 per cent by 2017-18.
As regard the current fiscal, Jaitley said the deficit will be 4.1 per cent as budgeted. "I will meet the challenging target of 4.1 per cent of GDP which we have inherited," he said, adding that the government remains firm on its 3 per cent fiscal deficit target. The Economic Survey had on Friday said that India must adhere to the medium term fiscal deficit target of 3 per cent of the GDP.
Subsidies slashed 10% to Rs 2.27 trillion
Subsidies on food, fertiliser and petroleum have been reduced by over 10 per cent to Rs 2.27 lakh crore for 2015-16, mainly due to a sharp cut in petroleum subsidies.
The subsidy bill on food, petroleum and fertilisers is estimated at Rs 2,27,387.56 crore for 2015-16, according to the Budget proposals presented by the Finance Minister in Parliament.
The bill was Rs 2,53,913.12 crore in the for 2014-15 (revised estimates). The government has earmarked Rs 1,24,419 crore for food subsidy in the next fiscal as against Rs 1,22,675.81 crore in the revised estimate of current fiscal.
Of the total food subsidy, nearly Rs 65,000 crore is for implementation of National Food Security
Act (NFSA).
Centre hacks plan spend for current fiscal by Rs 1 trillion
The government on Saturday cut Rs 1,07,066 crore from the budgeted Plan expenditure of Rs 5,75,000 crore for the current financial year due to a burgeoning fiscal deficit.
The Budget 2015-16, presented by Finance Minister Arun Jaitley in Parliament on Saturday, stated the revised estimates of Plan expenditure for 2014-15 at Rs 4,67,934 crore.
For the next financial year starting April 1, the government has kept the Budget estimates of
Plan expenditure at Rs 4,65,277 crore.
"Non-Plan expenditure estimates for the Financial Year are estimated at Rs 13,12,200 crore. Plan expenditure is estimated to be Rs 4,65,277 crore, which is very near to the revised estimates of 2014-15," Jaitley said in his Budget speech.
Bankers hail new fiscal road-map
Terming the Budget "pro-growth", bankers said on Saturday that the proposed extension of the fiscal road-map by pushing back the 3 per cent deficit target to FY18 will help meet the current growth needs of the Indian economy.
Finance Minister Arun Jaitley, in his first full Budget, said, “With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.”
cent fiscal deficit target will now be achieved in three years as against the FRBM target of two years.
As per the earlier roadmap fiscal consolidation, the deficit was to come down to 3 per cent by 2016-17. The Fiscal Responsibility and Budget Management (FRBM) Act will be amendment accordingly, Jaitley said.
"The additional fiscal space will be available for infrastructure funding," he said. As per the new roadmap, fiscal deficit will be 3.9 per cent of GDP in 2015-16, 3.5 per cent in 2016-17 and 3 per cent by 2017-18.
As regard the current fiscal, Jaitley said the deficit will be 4.1 per cent as budgeted. "I will meet the challenging target of 4.1 per cent of GDP which we have inherited," he said, adding that the government remains firm on its 3 per cent fiscal deficit target. The Economic Survey had on Friday said that India must adhere to the medium term fiscal deficit target of 3 per cent of the GDP.
Subsidies slashed 10% to Rs 2.27 trillion
Subsidies on food, fertiliser and petroleum have been reduced by over 10 per cent to Rs 2.27 lakh crore for 2015-16, mainly due to a sharp cut in petroleum subsidies.
The subsidy bill on food, petroleum and fertilisers is estimated at Rs 2,27,387.56 crore for 2015-16, according to the Budget proposals presented by the Finance Minister in Parliament.
The bill was Rs 2,53,913.12 crore in the for 2014-15 (revised estimates). The government has earmarked Rs 1,24,419 crore for food subsidy in the next fiscal as against Rs 1,22,675.81 crore in the revised estimate of current fiscal.
Of the total food subsidy, nearly Rs 65,000 crore is for implementation of National Food Security
Act (NFSA).
Centre hacks plan spend for current fiscal by Rs 1 trillion
The government on Saturday cut Rs 1,07,066 crore from the budgeted Plan expenditure of Rs 5,75,000 crore for the current financial year due to a burgeoning fiscal deficit.
The Budget 2015-16, presented by Finance Minister Arun Jaitley in Parliament on Saturday, stated the revised estimates of Plan expenditure for 2014-15 at Rs 4,67,934 crore.
For the next financial year starting April 1, the government has kept the Budget estimates of
Plan expenditure at Rs 4,65,277 crore.
"Non-Plan expenditure estimates for the Financial Year are estimated at Rs 13,12,200 crore. Plan expenditure is estimated to be Rs 4,65,277 crore, which is very near to the revised estimates of 2014-15," Jaitley said in his Budget speech.
Bankers hail new fiscal road-map
Terming the Budget "pro-growth", bankers said on Saturday that the proposed extension of the fiscal road-map by pushing back the 3 per cent deficit target to FY18 will help meet the current growth needs of the Indian economy.
Finance Minister Arun Jaitley, in his first full Budget, said, “With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.”
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