Govt's Smart Strategy That Led To Passing Of Fiscal Deficit
BENGALURU: The Indian government has scaled a deep target on fiscal deficit set for the FY 2014-15 in the past month. The gap is expected to be narrowed more than 4.1 percent of the gross domestic product.
The Union Budget in the last month was watched keenly as a test for government commitment to fiscal responsibility. Finally after the budget was announced, it assured to reduce the fiscal deficit and also that it will take some measures to avoid certain unworthy rules to make the process work smooth.
The shortfall in the direct tax was compensated by the indirect taxes. Even after the airways auction, some telecom companies paid a part of the price that they were committed with. All these last year stuffs have helped the government to monitor and make efficient expenditures without skipping any important issues of revenue.
According to a senior official in the finance ministry department, the fiscal deficit for this financial year would be within 4.1 percent again. Last year it was an imaginative decision for expenditure management, which has now helped the government to review and stick to the same ideology.
The fiscal deficit target would enable the government to compensate the revenue shortfall during the financial year. It is expected that the direct tax collections will reduced to be about 
10,000 crore according to the latest estimations done by the finance ministries.
According to the new plan rejigged by the honorable Finance Minister Arun Jaitley, the fiscal deficit will be reduced to 3.9 percent of gross domestic product for the 2015-16 and 3.6 for 2016-17 and 3.0 for the FY 2017-18.
