Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY2019/20 Union Budget due to weak goods and services tax (GST) and corporate income tax collections.
"At this point of time we are not revising any target. The decision will be taken later," Finance Minister Nirmala Sitharaman told reporters at her residence in New Delhi on Sunday, adding that there was no plan to cut spending currently.
The data released on Friday showed that revenue receipts of the Centre stood at Rs 12.65 lakh crore or 73.2 per cent of the revised estimate at the end of February as against Rs 11.77 lakh crore or 78.2 per cent of the estimates in the corresponding period last year.
The fiscal deficit, which is the gap between the government’s expenditure and revenue, stood at Rs 7.70 lakh crore during April-January of the current financial year ending March, according to data released by the Controller General of Accounts.
The government plans to reduce fiscal deficit to 3.3 per cent of Gross Domestic Product by March-end 2019. The fiscal deficit, or gap between expenditure and revenue, stood at Rs 7.16 lakh crore during April-November of the current financial year.
Net tax receipts (post refunds and devolution to states) grew just 7.5 per cent in H1FY19 against the year-ago period. A y-o-y growth of 19 per cent is required to raise the budgeted amount of Rs 14.8 lakh crore from taxes for the full year.