Business
2017-18 fiscal deficit target of 3 percent a challenge: Jaitley
New Delhi, April 24
The government's achieving
the 3 percent fiscal deficit target by 2017-18 is a challenge, Finance
Minister Arun Jaitley said on Friday.
"I am glad we have achieved
the 4.1 percent fiscal deficit target of last year. The journey to 3
percent has various challenges," he said replying to a question in Lok
Sabha.
Among the challenges to achieving the fiscal deficit
target was the forthcoming report of the Pay Commission as well as the
additional 10 percent fund devolution to states from the divisible pool
of central taxes as recommended by the Finance Commission and accepted
by the Centre.
According to the finance minister, another
challenge was to "prime up the economy and push growth" for which he has
targeted investment of Rs.70,000 crore in infrastructure in the current
fiscal.
"Besides the area of infrastructure, any additional
resource that I would have I tend to concentrate on irrigation," Jaitley
said.
In his first full budget presented in February, Jaitley
had extended the target deadline for controlling fiscal deficit to three
percent, reasoning that insistence on a time table to contain the
deficit would harm growth prospects.
The targets for the next
three years have been set at 3.9 percent for 2015-16, 3.5 percent for
2016-17, and 3.0 percent for 2017-18.
He said the challenge for any finance minister is to balance growth and control of the fiscal deficit.
"If fiscal discipline is established over the next 2-3 years, fiscal deficit will be better," he said.