Govt close to meeting fiscal deficit target of 3.4%; some numbers are still to come, says SC Garg

New Delhi: Finance Secretary Subhash Chandra Garg on Thursday said the government is close to meeting fiscal deficit target of 3.4 percent for 2018-19. The government in the interim Budget in February revised upward the fiscal deficit target to 3.4 percent from 3.3 percent of GDP estimated earlier for the financial year ended 31 March. “We are very close to meeting (fiscal deficit),” he said when asked whether the government has met fiscal deficit target for 2018-19. “Some numbers are still to come. So, we will wait for a couple of days. There will always be some shortfall but sum and substance of that is what is the net impact on the deficit,” he said on the sidelines of the CII event here. The government at many occasions had indicated that there might be some shortfall on indirect taxes collection side during 2018-19 but not on the direct tax front. [caption id=“attachment_5251131” align=“alignleft” width=“380”]  Economic affairs secretary Subhash Chandra Garg. Image courtesy - Twitter[/caption] Direct tax collection was revised upward to Rs 12 lakh crore. The government had originally budgeted to collect Rs 11.50 lakh crore in 2018-19 from direct taxes, which included corporate tax and personal income tax. Likewise, in 2018-19, GST collection is pegged at Rs 6.43 lakh crore (Revised Estimate), which is lower than the targeted Rs 7.43 lakh crore (Budget Estimate). On the indirect tax front, customs collection in 2018-19 is pegged at Rs 1.30 lakh crore (RE). Speaking at the event, Garg said the financial sector in India has to be cognizant of the changes that are happening in the different elements of the economy. He outlined three main areas that need investment, these areas being infrastructure, digital economy and circular economy. Garg also said that the infrastructure sector in particular needs more investment and we need the top global government pools of sovereign and pension funds to invest in India. Digital infrastructure required non-traditional sources of finance such as private equity and venture capital funds.