FM to fix fiscal deficit target of 3.5% of GDP in 2017-18: BofA-ML

06/01/2017 15:58

A report has said that the ensuing budget is likely to fix a fiscal deficit target of 3.5 per cent of GDP in 2017-18, relaxing the 3 per cent target earlier in order to support growth.

According to global financial services major Bank of America Merrill Lynch, (BofA-ML) the financial year 2017-18 fiscal deficit target is likely to be the same as this fiscal.

Commenting on the issue, a BofA-ML Official told the media, “We expect Finance Minister Arun Jaitley to target a fiscal deficit of 3.5 per cent of GDP – same as 2016-17 – in 2017-18 in his February 1 Budget, easing the 3 per cent target.”

As per reports, fiscal deficit, the gap between expenditure and revenue for the entire fiscal, has been pegged at Rs 5.33 lakh crore, or 3.5 per cent of GDP, in 2016-17.

According to official figures, fiscal deficit touched Rs 4.58 lakh crore, or 85.8 per cent of the budget estimate for the whole financial year, at the end of April-November.

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