Fiscal deficit of 3.8% estimated in RE (Revised Estimete) 2019-20 and 3.5% for BE 2020-21. It comprises two ingredients; 3.3% for year 2019-20 and 3% for the 2020-21 budget estimates.
Deviation of 0.5%, consistent with Section 4(3) of Fiscal Responsibility and Budget Management (FRBM) Act, both for RE 2019- 20 and BE 2020-21. (Section 4 (2) of the FRBM Act provides for a trigger mechanism for a deviation from the estimated fiscal deficit on account of structural reforms in the economy with unanticipated fiscal implications.)
Return path, committing to fiscal consolidation without compromising needs of investment out of public funds, is laid in Medium Term Fiscal Policy cum Strategy Statement.
On the recent debate over transparency and credibility of projected fiscal numbers, it is assured that procedure adopted is compliant with the FRBM Act.
GST Compensation Fund:Balances due out of collection of the years 2016-17 and 2017-18 to be transferred to the Fund, in two installments. Hereinafter, transfers to the fund to be limited only to collection by way of GST compensation cess.
Overhaul of Centrally Sponsored Schemes and Central Sector Schemes: It is necessary to align them with emerging social and economic needs of tomorrow and to ensure that scarce public resources are spent optimally.
Food subsidy will increase marginally while petroleum and interest subsidies are stagnant.
