Finance Secretary Arvind Mayaram has stated that achieving fiscal deficit target of 4.1 per cent is a tough task, however the government will be able to achieve this target as there are clear signs of economy picking up leading to buoyancy in revenue realisation. Mayaram further added that the government has taken very large number of bold decisions which will help to boost Indian economic growth as well as revenue.
The government during budget 2014-15 has set fiscal deficit target at 4.1 percent of GDP this year and decided to lower it to 3 percent of GDP by 2016-17. However, fiscal deficit at the end Q1 FY15 was widened to 56.1% of the budget estimate of Rs 5.31 lakh crore for the full fiscal year as growth in revenue receipts slowed and interest payments rose. Total expenditure of the government during April-June was Rs 4.13 lakh crore or 23 percent of the entire year estimates. On the fiscal deficit crossing half the budget estimate (BE) in first quarter, Mayaram stressed that in certain months, the government expenditure is higher as comparison to revenues adding that taxes are collected in certain periodical manner.
In order to boost industrial output and growth, Finance Minister Arun Jaitley in the Budget speech has announced a host of measures including incentives for the housing sector and relief in indirect taxes on auto and other sectors. India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14.
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