Dip in revenues may widen fiscal gap

According to India Ratings and Research the government will not be able to narrow fiscal deficit to the targeted 3.3% for 2018-19 of GDP on a shortfall in indirect taxes and non-tax revenues. The agency feels that fiscal deficit will come at 3.5% of GDP for FY19. This will be the third consecutive year that the fiscal gap number will be at 3.5%. The deficit, which is the difference between the total revenues and expenditure of the government, will come at Rs 6.67 lakh crore as against the budgeted Rs 6.24 lakh crore. A tax revenue shortfall of Rs 22,400 crore is expected on the indirect tax front. On divestments, it said only Rs 15,247 crore has been realised in the first half as against a budget target of Rs 80,000 crore.