Union Budget pegs fiscal deficit at 3.2 percent in 2017-2018

a. 3.2 percent

b. 3.3 percent

c. 3.4 percent

d. 3.5 percent

 

Union Budget: Fiscal Expenditure

Budget 2017 identified and found fiscal expenditure as one of the key drivers of the economy. As per the budget, FM Arun Jaitley indicated following initiatives:

• Fiscal deficit for 2017-18 estimated at 3.2 per cent of GDP.
• The total resources being transferred to the States and the UTs with Legislatures is INR 4.11 lakh crore in 2017-2018, as against INR 3.60 lakh crore in 2016-2017.
• The allocation for Scientific Ministries has risen to INR 37435 crore in 2017-18.
• The Revenue Deficit of 2.3 per cent in BE 2016-17 fell to 2.1 per cent in the Revised Estimates.
• The Revenue Deficit for 2017-18 is estimated at 1.9 per cent, against 2 per cent as per the FRBM Act.
• Commitment has been made to achieve 3 per cent fiscal deficit in the fiscal year 2018-19.
• A provision of INR 3000 crore has been allocated the DEA to implement various Budget announcements and other New Schemes in 2017-18. The total expenditure for 2017-18 has been pegged at INR 21.47 lakh crore.
• The allocation for Capital expenditure has been increased by 25.4 per cent over the previous year with the aim of fiscal consolidation.
• A sum of INR 274114 crores, including INR 86488 crores for Defence capital, has been sanctioned for Defence expenditure. This excludes pensions.