Will stick to 3.5% fiscal deficit estimate for fiscal: Finmin

The government is optimistic about meeting the 3.5 per cent fiscal deficit target for the current financial year ending March 31, Finance Secretary Hasmukh Adhia said today. Earlier in the day the government reported a fiscal deficit of Rs 7.16 lakh crore or 120.3 per cent of the revised target which spooked the money markets with rupee falling to 65.18 against the dollar versus 64.97 in previous close. Adhia said that the finance ministry today reviewed the fiscal position of the entire financial year. "We are meeting the fiscal deficit target... We are very optimistic... Today only we reviewed the position...We shall meet the target," Adhia told reporters.
Official data on fiscal deficit for entire fiscal 2017-18 would be released in April end.

In the Budget for 2018-19 presented on February 1, Finance Minister Arun Jaitley had revised upwards the fiscal deficit target to 3.5 per cent of the GDP for 2017-18, as against the initial target of 3.2 per cent, on account of GST implementation and deferment of spectrum auction. Government's revenue receipt during April-February stood at Rs 12.83 lakh crore revenue, which is 79.09 per cent of revised estimates.

Total expenditure incurred by the government during the period was over Rs 19.99 lakh crore, which is 90.14 per cent of revised estimates for 2017-18. For 2018-19, the fiscal deficit or gap between total expenditure and revenues has been pegged at 3.3 per cent.