Fiscal deficit for 2017-18 pegged at 3.2% of GDP; to achieve 3% in 2018-19

New Delhi: Finance Minister Arun Jaitley today said that the total expenditure in Budget for 2017-18 has been placed at Rs. 21.47 lakh crores. With the abolition of Plan-Non Plan classification of expenditure, the focus is now on Revenue and Capital expenditure.

Taking note of the fiscal deficit roadmap for the next three years and considering the need for higher public expenditure in the context of sluggish private sector investment and slow global growth, the Finance Minster has pegged the fiscal deficit for 2017-18 at 3.2% of GDP and further committed to achieve 3% in the following year i.e. 2018-19.

The Union Finance and Corporate Affairs Minister further said that he has stepped-up the allocation for Capital expenditure by 25.4% over the previous year with the aim of fiscal consolidation, without compromising the requirements of public investment.

Presenting his Fourth Budget for 2017-18 in Parliament today, the Arun Jaitley said that the total resources being transferred to the States and the Union Territories with Legislatures is Rs. 4.11 lakh crore in 2017-18, as against Rs. 3.60 lakh crore in BE 2016-17.

Jaitely said, a provision of Rs. 3,000 crore has been made under the Department of Economic Affairs to implement various Budget announcements and other New Schemes in 2017-18. For Defence expenditure excluding pensions, he provided a sum of Rs 2,74,114 crores including Rs. 86,488 crores for Defence capital. The Finance Minister increased allocation for Scientific Ministries to Rs. 37,435 crore in 2017-18.

In his Budget Speech, the Finance Minister Arun Jaitley said he has taken due care to limit the net market borrowing of Government to Rs. 3.48 lakh crores after buyback, much lower than Rs. 4.25 lakh crores of the previous year. More importantly, the Revenue Deficit of 2.3% in BE 2016-17 stands reduced to 2.1% in the Revised Estimates. The Revenue Deficit for next year is pegged at 1.9% , against 2% mandated by the FRBM Act. The Government will further improve upon these fiscal numbers, especially the fiscal deficit, in the next year, through greater focus on quality of expenditure

and higher tax realisation from the huge cash deposits in Banks, triggered by demonetization, Jaitely concluded.