Govt will stick to fiscal target, says ministry

In a music to the ears of investors, especially overseas, rating agencies and even the Reserve Bank of India, the government on Friday issued a statement saying, that it will stick to its fiscal consolidation roadmap this year and stick to the 3.9 per cent fiscal deficit target.

“The government is committed to promoting and strengthening inclusive and sustainable development, by ensuring proper and effective utilisation of funds provided in the annual Budget, without compromising fiscal consolidation,” the statement said.

The statement from the Finance Ministry, which comes ahead of the Budget, is set to calm stock markets and sooth investors who usually keep their fingers crossed in the run up to the Budget, on whether the government will adhere to its fiscal goals and structural reforms.

In his meeting with Finance Minister Arun Jaitley on Wednesday, Reserve Bank of India Governor Raghuram Rajan had stressed on the government sticking to fiscal consolidation and improving the quality of spending to lift economic growth.