India is ready for growth of 7- 8%: Jaitley

FM: Intend to be on track for lowering fiscal deficit

New Delhi, Nov. 30: Finance minister Arun Jaitley on Thursday said improved macroeconomic fundamentals have placed India on the growth trajectory of 7- 8 per cent and the country would have to invest heavily in infrastructure over the next two decades to graduate into a middle income economy.

“India today, in the last three years, was for the first time in history, has been the fastest growing major economy and we do hope that in the first instance we evolve into a middle income economy and subsequently we graduate into a developed economy.

“That’s the economic roadmap that we have for us,” he said.

New Delhi, Nov. 30: India's fiscal deficit at the end of October hit 96.1 per cent of the Budget Estimate ( BE) for FY18, mainly due to lower revenue realisation and rise in expenditure.

In absolute terms, the fiscal deficit — the difference between expenditure and revenue — was ` 5.25 lakh crore during April- October of FY18, according to data of the Controller General of Accounts ( CGA).

During the same period of FY17, the deficit stood at 79.3 per cent of the target. For FY18, the government aims to bring down the fiscal deficit to 3.2 per cent of GDP. Last fiscal, it had met the 3.5 per cent target.

The data showed that the government’s revenue receipts were at ` 7.29 lakh crore in the seven months of the current fiscal, which work out to 48.1 per cent of the BE of ` 15.15 lakh crore for the entire year.

The receipts, comprising taxes and other items, were at 50.7 per cent of the target in the year- ago period.

As per the data, the government's total expenditure was ` 12.92 lakh crore at October- end, or 60.2 per cent of the BE. It was 58.2 per cent of the BE a year ago.

Capital expenditure during April- October of FY18 was only 52.6 per cent of the BE compared to 50.7 per cent in the same period of the previous fiscal.

Revenue expenditure, including interest payment, was 61.5 per cent of the BE during FY18. This compares with 59.2 per cent a year earlier.

However, finance minister Arun Jaitley said he intends to be on track on lowering fiscal deficit even as the figure for April- October hit 96.1 per cent of budget estimates.

“The FRBM ( Fiscal Responsibility and Budget Management) report is under consideration. The last three years, we have an exemplary record as far as maintaining that glide path is concerned. We intend to move on that track,” Mr Jaitley said.

The finance ministry is scheduled to review next month its fiscal deficit target for FY18.

The finance minister said the FY19 Budget, which will be unveiled on February 1, will focus more on infrastructure and rural sectors.