Budget 2017: Fiscal deficit to be constrained at 3.2%, says Jaitley

Adhering to fiscal consolidation roadmap, Finance Minister Arun Jaitley on Wednesday said the government will target to bring down the fiscal deficit to 3.2% of the GDP in the fiscal 2017-18.

"...I have pegged the fiscal deficit at 3.2% in 2017-18 and remain committed to achieve 3% in the following year. With this gradual approach, I have ensured adherence to fiscal consolidation without compromising requirements of public expenditure," he said in his Budget speech for 2017-18.

Revenue deficit will be reduced to 2.1% for 2017-18 from 2.3% in the ongoing fiscal, he said.

Net market borrowing would be Rs 3.48 lakh crore in 2017-18 from 4.1% in the current fiscal, he said.

FRBM Review Panel headed by former Revenue Secretary N K Singh had recommended debt to GDP ratio of 60% by 2023 and fiscal deficit at 3% for next 3 years.