Day 2 of PM Modi's economic review meet: Arun Jaitley says govt confident of maintaining 3.3% fiscal deficit target

Sep 15 (AZINS) The government will stick to the fiscal deficit target of 3.3% this fiscal as it expects buoyant tax revenues and exceeding disinvestment target, Finance Minister Arun Jaitley said on Saturday.

Speaking to reporters after Prime Minister Narendra Modi reviewed various departments of the Finance Ministry, he said the government is confident of surpassing the 7.2-7.5% GDP growth rate projected in the Budget for 2018-19.

Prime Minister Narendra Modi on Friday began a two-day review of prevailing economic issues including fall in the rupee, rising fuel prices and reforms measures needed to boost growth. On day one, Modi met Finance Minister Arun Jaitley, RBI Governor Urjit Patel and other key officials involved in economic policymaking.

Department of Economic Affairs (DEA) gave a detailed presentation today, the Finance Minister said.

The govt is confident that we will have a growth rate higher than what he had projected earlier this year in the budget, Jaitley said adding that the inflation is broadly under control.

"The govt is confident and will strictly maintain 3.3% fiscal deficit target," he said.

The capital expenditure targets will also be met, he added.

"As far as capital expenditure is concerned, already we have spent about 44% of the budgeted expenditure till 31 August and we will end the year without any cuts and will maintain the 100% capital expenditure," he said.

Jaitley said the income tax collections have been robust with expanding base and collections will exceed budgetary targets.

The Goods and Services Tax (GST), he said, is settling down.

He also exuded confidence of surpassing the Rs 1 lakh crore target from disinvestment proceeds.