Greater noida:Fiscal Deficit in the Budget to be presented on 1st February, 2020 is likely to be 3.34% depending upon the growth targets fixed by the Finance Minister said Prof. (Dr.) Yamini Agarwal,
Professor of Finance and Dean (Research), Indian Institute of Finance while making a presentation on “My Budget” for the programme – Mera Budget on Rajya Sabha TV recently.
According to her, the major issues in the present budget are to balance between consumption and investment, Sustainable growth and fiscal consolidation.
According to her, as per her detailed calculations made, GDP is expected to be 235 lakh crores for year 2020-2021. The total receipts are expected to be Rs. 42,92,000 crores of which revenue receipts would be around Rs. 22,87,000 crores. In the budget the government may end up spending Rs. 28,88,000 crores resulting into revenue deficit of Rs. 5,67,000 crores which is 2.41%. Effective revenue deficit as per her calculations is expected to be 1.5%. Fiscal deficit according to her is expected to be Rs. 7,84,800 crores which is 3.34%. However she feels in case of GDP growing at a slower rate the fiscal deficit may be 3.54%
According to her, special attention is likely to be given to agriculture, infrastructure, education, health, rural development and MSMEs. There may be a possibility on rationalisation of indirect taxes to promote “Make in India” and relief on personal taxation by raising the minimum exemption limit by Rs. 1 Lakh or 1.5 Lacs.
Government has to target higher growth rate so as to make India a $ 5 trillion dollars economy in next 4 years.