'Fiscal deficit to be 3.4% of GDP this year'

The Centre breached its fiscal deficit target for the second year in a row to settle at 3.4% in 2018-19, Finance Minister Piyush Goyal’s interim Budget showed Friday.

The government had set the target of 3.3% 0r Rs 6.24 lakh crore of fiscal deficit in the year that is concluding on March 31.

Last year, the fiscal deficit was at 3.5% of GDP.

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Rating agencies and economists had cautioned the government against any breach of the fiscal deficit with Moody’s saying the breach would be to the tune of a percentage point.

However, the NDA government has to its credit bringing down the fiscal deficit from 4.1% in 2014-15 to 3.4% in 2018-19, which the economists said was remarkable.