Section III – Fiscal Management
- I now turn to the fiscal situation for 2017-18 and fiscal estimates for 2018-19.
- In 2017-18, Central Government will be receiving GST revenues only for 11 months, instead of 12 This will have fiscal effect. There has also been some shortfall in Non-Tax revenues on account of certain developments, including deferment of spectrum auction. A part of this shortfall has been made up through higher direct tax revenues and bigger disinvestment receipts.
- Total Revised Estimates for expenditure in 2017-18 are `57 lakh crore (net of GST compensation transfers to the States) as against the Budget Estimates of `21.47 lakh crore.
- Our Government assumed office in May 2014 when fiscal deficit was running at very high Fiscal Deficit for 2013-14 was 4.4% of GDP. The Prime Minister and the Government have always attached utmost priority to prudent fiscal management and controlling fiscal deficit. As Hon’ble Members would recall, we embarked on the path of consistent fiscal reduction and consolidation in 2014. Fiscal Deficit was brought down to 4.1% in 2014-15 to 3.9% in 2015-16, and to 3.5% in 2016-17. Revised Fiscal Deficit estimates for 2017-18 are `5.95 lakh crore at 3.5% of GDP. I am projecting a Fiscal Deficit of 3.3% of GDP for the year 2018-19.
- In order to impart unquestionable credibility to the Government’s commitment for the revised fiscal glide path, I am proposing to accept key recommendations of the Fiscal Reform and Budget Management Committee relating to the adoption of the Debt Rule and to bring down Central Government’s Debt to GDP ratio to 40%. The government has also accepted the recommendation to use Fiscal Deficit target as the key operational Necessary amendment proposals are included in the Finance Bill.