Union Finance Minister Arun Jaitley. (File | PTI)
NEW DELHI: Setting aside apprehensions regarding fiscal slippage, Finance Minister Arun Jaitley on Saturday said the government would be able to maintain its deficit targets as revenues would be “reasonably more comfortable” in the next financial year.
“I see next year to be more comfortable as far as revenues are concerned. I cannot see at this stage that there would be any slippages. I am sure we will be able to maintain the target quite well,” Jaitley said after meeting RBI’s board in a customary post-Budget exercise. He was joined by RBI governor Urjit Patel and SEBI chief Ajay Tyagi.
Lower-than-estimated indirect tax and non-tax revenue collection has already forced the government to revise its fiscal deficit target to 3.5 per cent for the current fiscal year.
For the next financial year, the government has set a fiscal target of 3.3 per cent. However given the shortfall in revenue collection, experts say risks are tilting towards a higher fiscal deficit for 2018-19.
“Lower indirect tax revenue collections may outweigh any upside risks from higher nominal GDP growth, non-tax revenue and direct tax collection,” Goldman Sachs said in a release post budget.
RBI and Sebi must be cognizant of risks: Patel
“So far neither globally nor in India have we felt that this bubble could lead to a very major problem. However, RBI and Sebi need to be cognizant of the risk going forward,” said RBI governor Urjit Patel
‘Long-term capital gains tax to have small impact’
“It will be wrong to say long-term capital gains tax will have no impact at all on Indian markets. But, any such impact would be small. Global factors pose bigger risks,” said SEBI Chief Ajay Tyagi.
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