With help of expenditure savings and other measures including the rollover of the fuel subsidy, the government has managed to meet the revised fiscal deficit target of 3.4 per cent of the Gross domestic product (GDP). The government in its interim Budget in February had revised upward the fiscal deficit target to 3.4 per cent from 3.3 per cent of GDP estimated earlier for Financial year 2019 (FY19).
The government met revised fiscal deficit target mainly on account of cut last minute expenditure and rolled over fuel subsidies. Accordingly, the shortfall in tax collection has been matched. There has also been some increase in non-tax revenue collection, especially on account of disinvestment proceeds.
Besides, about Rs 25,000-30,000 crore worth of subsidies due to PSU oil companies for selling LPG and kerosene oil below the cost during FY19 have been rolled over and will now be paid in the current fiscal. Finance Secretary Subhash Chandra Garg recently said the government is close to meeting fiscal deficit target of 3.4 per cent for FY19.