NEW DELHI: For a new government led by Prime Minister Narendra Modi, the current difficult economic situation will be no less than a challenge to budget the fiscal deficit target within the target of achieving it. Economic sector expert Professor N.R. Pandora said this.
Significantly, the government has to work hard to meet the fiscal deficit of 3.4 per cent projected in the Budget 2018-19. With the revised estimates of the year increasing substantially, it was difficult for the government to achieve the targets set. In 2018-19, the budget estimate of Rs 6,21,000 crore of corporation tax was increased to Rs 6,71,000 crore in the revised estimates. The Gross Domestic Product (GDP) growth rate in the fourth quarter of the year has come down to a five-year low of 5.8 percent.
The figure for annual GDP growth also fell to 6.8 percent, the lowest in the past five years. Professor N R Bhanumurthy at the National Institute of Public Finance and Policy (NIPFP) says that it will be a big challenge for the government to prepare the budget in the coming budget keeping the data on the ground.