Fiscal Deficit - Current Affairs Questions and Answers

ANSWER: Fiscal Responsibility and Budget Management

Explanation:
Government has formed a 5 member committee under former revenue secretary NK Singh to review the working of the 12 year old FRBM Act and examine the fiscal deficit range instead of the fixed target. Other members of the committee include former finance secretary Sumit Bose, Chief Economic Advisor Arvind Subramanian, RBI Deputy Governor Urjit Patel and NIPFP Director Rathin Roy.

• Committee will submit report to the government by October 31, 2016
• Committee will examine the need and feasibility of a fiscal deficit range as the target in place of existing fixed numbers (percentage of GDP) as goal.
• The way forward is keeping in view the broad objective of fiscal consolidation and prudence and changes required in the context of fiscal consolidation and prudence.
• Instead of fixed numbers as fiscal deficit targets, it is far better to have fiscal deficit range as the target- this provides necessary policy space to the government to deal with dynamic situations.

ANSWER: INR 3.78 lakh crore

Explanation:
Central government has notched up fiscal deficit of INR 3.78 lakh crore totalling 68.1% of the full 2015-2016 fiscal target. This was during the period of the first 6 months (April to September), according to data released by the government. By September, government got revenue of INR 5.13 lakh crore which is 45% of FY16 estimate and total spending was pegged at INR 9.11 lakh crore or 51.2 percent. From the total spending, plan spending was estimated at INR 2.54 lakh crore and non plan at INR 6.57 lakh crore. Of the total revenues, GoI has received INR 144 lakh crore through non tax sources and a significant portions of tax revenues have been received during Q4.