The fiscal deficit was 3.5 per cent of GDP during 2017-18 and 2016-17, down from 3.9 per cent in the previous fiscal. The Fiscal Responsibility and Budget Management (FRBM) Rules, 2004, specifies annual targets and mandates the central government to reduce the fiscal deficit by an amount equivalent to 0.1 per cent or more of GDP per year.
Concerns have been raised by different agencies about the ability of the government to meet the fiscal deficit target for the current financial year ending March 2020 in view of economic slowdown which is impacting revenue collections.
The latest data on goods and services tax collections for October showed that the indirect tax mop-up remained below Rs 1 lakh crore for the third month in a row.
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