Govt to slacken fiscal deficit target for FY18

India Infoline News Service | Mumbai | September 24, 2017 09:56 IST

The government of India is considering a strategic plan to slacken its fiscal deficit target to enable the government spend up to Rs500 billion (USD 7.7 billion) to arrest the economic slowdown.

The government of India is considering a strategic plan to slacken its fiscal deficit target to enable the government spend up to Rs 500 billion (USD 7.7 billion) to arrest the economic slowdown, reported a leading news daily on Thursday.
The growth of Asia's third-largest economy slumped to a three-year low of 5.7% in the quarter ended in June. The Finance Minister Arun Jaitley said on Wednesday that the government is seeking out ways to speed up the economic growth and bring it out of the slump.
According to media reports, government sources said that increased spending is expected to broaden the federal fiscal deficit for the financial year ending in March 2018 to 3.7% of GDP, lower than the budgeted target of 3.2%.
The officials also said that the economy was going through a 'transitory phase' post the government's decision late to ban the old higher denomination banknotes in November last year and post the launch of a nationwide goods and services tax in July in the current fiscal.

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