For the FY 2018-19, the government will fail to meet its fiscal deficit i.e. the difference between all its earnings and expenditure. In the Interim Budget 2019 speech, Piyush Goyal has revised down fiscal deficit to 3.4%.
The government has placed the fiscal deficit target for the FY 2018-19 at 3.3% of GDP or Rs. 6.24 lakh crore.
As per a Bloomberg report, Axis Bank and Kotak estimated the govt to falter on the metric by 20 basis points to 3.5%.
Fiscal deficit for April-November stood at Rs 7.16 lakh crore, or 114.8 per cent of the target. It is slightly more than the 112 per cent recorded in the same period last fiscal.
The fears on the fiscal slippage front increased largely after the fiscal deficit for the April-October FY 2019 increased year-on-year at 23.5%. And the fiscal stress is more as the government has lagged in its tax collection.