Advance GDP estimate at 7.2% gives little relief to fiscal deficit pressure

Fiscal deficit at 3.3 per cent of GDP now comes at Rs 6.28 trillion compared to what was projected at Rs 6.24 trillion in the Budget Estimates

Struggling to meet the fiscal deficit target at 3.3 per cent of the gross domestic product (GDP) in 2018-19, the Union government might get only a partial relief from the new national accounts number released on Monday. 

The relief is worth around Rs 40 billion. This is so because the Budget had assumed the size of the economy to grow to Rs 187 trillion in FY19 where as it is now estimated to increase to Rs 188 trillion. Fiscal deficit at 3.3 per cent of GDP now comes at Rs 6.28 trillion compared to what was projected at Rs 6.24