On the fiscal front, the latest data shows that the Government has been able to meet the revised fiscal deficit estimate of 3.4 percent of GDP. However, there has been Rs 1.45 lakh crore reduction in expenditure with Rs 69,140 crore cut in subsidies (major cut in food subsidy of Rs 69,394 crore), covering for Rs 1.57 lakh crore reduction in total receipts.
Now that FY19 estimates are revised, the FY20 might seem to be on the higher side, Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI said, adding given growth slowdown that the country is facing, the question arises whether the government should continue to focus on fiscal consolidation path or keep the deficit numbers constant for the next two years before reducing it further and try to propel growth.
Sticking to a particular number is not that important. Instead, the Government should strive to make credible, transparent and achievable fiscal rules, he said.