Adhering to the fiscal consolidation roadmap, Finance Minister Arun Jaitley today said the government will target to bring down the fiscal deficit to 3.2 per cent of the GDP in the fiscal 2017-18.
"...I have pegged the fiscal deficit at 3.2 per cent in 2017-18 and remain committed to achieve 3 per cent 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 per cent for 2017-18 from 2.3 per cent in the ongoing fiscal, he said.
Net market borrowing would be Rs 3.48 lakh crore in 2017-18 from Rs 4.1 lakh crore (rpt) Rs 4.1 lakh crore 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 per cent by 2023 and fiscal deficit at 3 per cent for next three years.