INSUBCONTINENT EXCLUSIVE:
revised fiscal deficit target of 3.4 per cent of the GDP after it cut last minute expenditure and rolled over fuel subsidies to make up for
the shortfall in tax collection
The interim Budget presented in February revised upward the fiscal deficit target to 3.4 per cent from 3.3 per cent of GDP estimated earlier
for 2018-19.According to sources, the revised target has been met with the help of expenditure savings and other measures including the
rollover of the fuel subsidy
As a result, 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.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 2018-19 have been rolled over and
will now be paid in the current fiscal year.Last week, Finance Secretary Subhash Chandra Garg said the government is close to meeting fiscal
deficit target of 3.4 per cent for 2018-19."We are very close to meeting (fiscal deficit)," he had said when asked whether the government
has met the fiscal deficit target.The government is estimated to have witnessed a shortfall of Rs 50,000 crore in direct tax collection
target of Rs 12 lakh crore for 2018-19, a senior finance ministry official said.The government had revised the direct tax collection target
upwards to Rs 12 lakh crore from the original Budget Estimate of Rs 11.5 lakh crore for 2018-19
It was expecting higher collections from corporate taxes.The revision was made during the interim Budget for 2019-20 in February.As far as
non-tax revenue collection is concerned, the government exceeded its disinvestment target for 2018-19 by Rs 5,000 crore, taking the total
proceeds to Rs 85,000 crore.Besides, the non-tax revenue was boosted by the second interim dividend collection from various companies
including Coal India, IOC and ONGC.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on
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