STOCK MARKET BSE NSE

Sticking to fiscal deficit target important: CEA Subramanian on Economic Survey

The Economic Survey, tabled in Parliament Thursday, pegged the fiscal deficit for 2018-19 at 3.4 per cent of the GDP, the same level as projected in the interim Budget.

Published: 04th July 2019 03:55 PM  |   Last Updated: 04th July 2019 03:55 PM   |  A+A-

Chief Economic Adviser Dr Krishnamurthy V. Subramanian

Chief Economic Adviser Dr Krishnamurthy V. Subramanian. (Photo | Parveen Negi, EPS)

By PTI

NEW DELHI: Chief Economic Adviser K V Subramanian Thursday stressed that the government should stick to the fiscal consolidation path or risk crowding out investment due to large public borrowings.

The Economic Survey, tabled in Parliament Thursday, pegged the fiscal deficit for 2018-19 at 3.4 per cent of the GDP, the same level as projected in the interim Budget.

It is important to stick to fiscal deficit path, otherwise, there is a risk of crowding out of the investment, Subramanian told reporters here.

The government resorts to market borrowings through government securities and treasury bonds to meet the gap between expenditure and revenue, popularly known as fiscal deficit.

While the Survey has retained the fiscal deficit estimate for 2018-19 at 3.4 per cent, the general fiscal deficit -- Centre and states combined -- has been pegged at 5.8 per cent in 2018-19, down from 6.4 per cent in the previous fiscal.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp