Concern regarding fiscal deficit is real, says Ashok Lavasa

Ashok Lavasa would be remembered as a bureaucrat during whose tenure the Modi govt implemented demonetisation and GST

Outgoing Finance Secretary Ashok Lavasa would be remembered as a bureaucrat during whose tenure the Narendra Modi government implemented demonetisation and the goods and services tax (GST). Days before his retirement, Lavasa tells Arup Roychoudhury & Megha Manchanda there is still lack of clarity regarding GST proceeds for this year and, hence, the fiscal deficit target is being watched closely. He, however, ruled out any fiscal stimulus this year. Edited excerpts:

The government’s bank recapitalisation plan has been received well. But there are problems from the demand side as corporate houses are not taking fresh loans. What can the government