The government is keen to meet the fiscal deficit target of 3.2 per cent of GDP for the financial year 2017-18.
The divestments and increased goods and services tax (GST) collections will help government meet fiscal deficit target, says a report.
"Disinvestment drive and GST rollout will reduce pressure on fiscal arithmetic," domestic rating agency India Ratings said in a report today.
As per the India Ratings report, successful subscription of Bharat 22 exchange traded fund has helped government move closer to its FY18 divestment target of Rs 72,500 crore, as it has raised Rs 52,300 crore by the end of November.
It said GST collection is encouraging and likely to further improve going forward with higher return filing compliance.
The government is keen to meet the fiscal deficit target of 3.2 per cent of GDP for the financial year of 2017-18.
Going by the fiscal consolidation road map targets, it will vie to trim fiscal deficit to 3 per cent of GDP in the next financial year.
The FRBM Act of 2003 had fixed the fiscal deficit of 3 per cent of GDP by 2008-09.
The N K Singh panel, too, suggested a slide down of fiscal deficit to 2.5 per cent by the 2022-23 from 3.5 per cent in 2016-17.
Source: Media reports