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Fiscal Deficit Is Under Control As Govt Cuts Gross Borrowings By Rs 70,000 Crore

JAVED SAIFI | 0
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| September 29 , 2018 , 16:57 IST

Department of Economic Affairs Secretary Subhash Chandra Garg announced a reduction of borrowings by Rs 70,000 crore at Rs 2.47 lakh crore for the October-March period on Friday, signalling that fiscal deficit is under control.

"I want to reassure that fiscal management is completely on track. I don't see the necessity for expenditure cuts at this stage meet the fiscal deficit target of 3.3 per cent of GDP for 2018-19," Garg said.

While addressing a press conference on Friday Garg said that the government will borrow Rs 2.47 lakh via bonds in the second half of the financial year.

According to economists, it is a positive sign to the market that chances of the fiscal deficit by the government are less.

Also Read: Government Cuts Extra-Market Borrowing Needs From Rs 50,000 Crores To Rs 20,000 Crores 

Similarly, the government had reduced borrowing requirements on January 17, 2018, taking note of revenue receipts and expenditure pattern.

The requirement of additional borrowing was reduced from Rs 50,000 crore to Rs 20,000 crore.

Previously on September 16 Finance Minister Arun Jaitley assured that the government is committed to maintaining a 3.3 per cent fiscal deficit target without cuts in development expenditure.

"The government and Finance Ministry's top priority is to maintain the fiscal deficit and we are trying to maintain it and we are confident we will be able to maintain it," Jaitley said.