Union Revenue Secretary Tarun Bajaj on Friday said that the country's fiscal deficit will come down once revenues start to grow. Speaking at a webinar organised by the Bengal Chamber of Commerce and Industry (BCCI), Bajaj said that the government had adopted a loose fiscal policy on the backdrop of increased capital expenditure.

"The fiscal deficit at present is 6.9 per cent of the GDP. The target for 2025-26 is to bring down to 4.5 per cent. If we continue to grow our revenues, the fiscal deficit can come down by 0.1 or 0.2 per cent", he said. Next year, the targeted fiscal deficit is 6.4 per cent, Bajaj said, adding that the government had the opportunity to lower it further. "But increased capital expenditure by almost 35 per cent had forced us to keep the fiscal level at that level", he added.
The Revenue secretary said since last year, the Centre had started giving money to the states for making capital expenditure. Unless this is done, the last mile infrastructure will not take place, Bajaj added. "The intention of the government is to keep the GDP growing. Then only income and revenues will be better", he stated. On the taxation part, he said the emphasis was on to maintain stability so very little tinkering was done.
On the direct taxes, he said 55 per cent of the revenue on this count was coming from transactions based on TDS. Bajaj said increased capital expenditure will lead to increased consumption and spending.
(PTI)
More From GoodReturns

Crash in Gold Rate in India by Rs 71,400 in Single Day; Will Gold Price Today Fall Below Rs 1.50 Lakh? Outlook

Gold & Silver Rates Today Live: MCX Gold Crashes By Rs 5,645, Silver Falls By Rs 16,540; 24K, 22K, 18K Gold

1:5 Split Soon? Vedanta Ltd To Consider 3rd Interim Dividend On March 23, Share Jumps; Record Date & Buy Call

Sleeper Vande Bharat Express New Routes Identified for Long Distance Travel

Gold & Silver Rates Today Live Updates: Will 24 Carat, 22 Carat, 18 Carat See Bullish Week Ahead?

Mega Gold Price Crash Alert! 24K Sinks Rs 1.36 Lakh/100 Gm In Week; Silver Sees Losses | March 23-27 Outlook

Gold & Silver Rates Today Live: MCX Gold Ends Above Rs 1.40 Lakh, Silver Up 1%; 24K, 22K, 18K Gold On March 24

Gold Rate Crashes Over Rs 1 Lakh in Single Day, Slips to Lowest Since January; Will Gold Price Today Decline?

Gold Price Crash May Fuel Jewellery Demand: Why Kalyan Jewellers Share Price Could Shine Despite 5% Dip

Fatal Crash In Gold Rates In India By Rs 1,03,200/100 Gm; Biggest Single-Day Fall In 24K, 22K, 18K Gold Prices

Gold Rates In India Crash By Rs 29,400 On March 21 After Spot Gold Hits Weakest Week; 24K, 22K, 18K Gold Price



Click it and Unblock the Notifications