The government is likely to account for a significant portion of its subsidy burden for the current fiscal, including Rs.20,000 crore on subsidizing fuel, in 2019-20 to meet the fiscal deficit target for the year to 31 March. The likelihood of the government meeting the fiscal deficit target of 3.3% of GDP will also depend on whether it achieves the budgeted revenue targets related to the goods and services tax, dividend income and disinvestment proceeds, as well as fund requirements for revised minimum support prices, the Ayushman Bharat scheme and bank recapitalization. While the budgeted growth in the centre’s indirect taxes for FY19 was 19.2%, the realized growth during the first half of the fiscal was just 4.4%. This also compares adversely with the 23% growth in indirect tax revenues in the year-earlier period.

(Live Mint)