The government’s concerted efforts have helped in bringing down fiscal deficit which would be further reduced to 3.5 percent of Gross Domestic Product (GDP) by 2018-19.
The concerned authorities have set 3.8 percent fiscal deficit target for current year 2016-17 which will be further brought down.
Fiscal consolidation remains on track as fiscal deficit continued to fall for fourth year in a row. The fiscal deficit was contained at 8.2 percent in 2012-13 (down from a projected 8.8 percent).
Fiscal deficit was reduced significantly in 2013-14 and recorded at 5.5 percent of GDP (lower than its budgeted target of 6.6 percent) and recorded at 5.3 percent of GDP in 2014-15.
Fiscal deficit was reduced further at 4.6 percent of GDP during 2015-16 supplemented by enhanced revenue mobilization and rationalization of non-development expenditure.
Enumerating the main steps taken by government to reduce dependence upon foreign and domestic loans, sources at Finance Division on Tuesday said it may not be out of place to mention that borrowing both domestic and foreign is undertaken to meet fiscal deficit as can be seen from above, there has been a dramatic decrease in fiscal deficit as a result of which borrowing requirement have also been slashed as percentage of GDP.—APP