Centre may miss 3.3% fiscal deficit target for 2019-20

Likely to raise fiscal deficit target to 3.5% of GDP for current fiscal

The central government may miss its fiscal deficit target of 3.3 per cent of GDP for 2019-20, as per media reports. Lower than expected tax collection will have a significant impact on the fiscal deficit, opine industry sources. Tax collections could fall by as much as USD 14 billion or four per cent of USD 344 billion annual target, they pointed out. Amid pressure for additional stimulus measures in the backdrop of slow economic growth, industry sources expect the government to raise the fiscal deficit target to 3.5 per cent of GDP by end of 2019. The government may even defer its disinvestment plans due to weak market demand.

References
1. https://economictimes.indiatimes.com/news/economy/indicators/rbi-money-wont-be-enough-more-stimulus-to-push-up-fiscal-deficit/articleshow/70977218.cms
2. https://www.business-standard.com/article/economy-policy/why-india-could-miss-fiscal-deficit-target-for-the-current-financial-year-119090400919_1.html