Economic Survey 2018-19: Sticking to fiscal deficit target important, says CEA KV Subramanian

New Delhi: Chief Economic Adviser KV Subramanian on Thursday stressed that the government should stick to the fiscal consolidation path or risk crowding out investment due to large public borrowings. [caption id=“attachment_6934651” align=“alignleft” width=“380”] Chief Economic Adviser KV Subramanian presents the Economic Survey 2018-19 during a press conference, in New Delhi. PTI[/caption] The Economic Survey, tabled in Parliament on Thursday, pegged the fiscal deficit for 2018-19 at 3.4 percent of the GDP, the same level as projected in the interim Budget. It is important to stick to fiscal deficit path, otherwise there is a risk of crowding out of the investment, Subramanian told reporters here. The government resorts to market borrowings through government securities and treasury bonds to meet the gap between expenditure and revenue, popularly known as fiscal deficit. While the Survey has retained the fiscal deficit estimate for 2018-19 at 3.4 percent, the general fiscal deficit – Centre and states combined – has been pegged at 5.8 percent in 2018-19, down from 6.4 percent in the previous fiscal.