Economic Survey: Will the FM consider recalibrating the FRBM roadmap?

The Survey forecasts 2020-21 real GDP to grow at 6-6.5%

The Economic Survey underscores the need to support growth momentum in the economy. This reinforces the expectation that the government may opt for the escape clause in the Fiscal Responsibility and Budget Management Act or FRBM Act (that allows up to 50 basis point slippage to the Budgeted deficit under exceptional circumstances) and may settle for a 2019-20 fiscal deficit of 3.6-3.8 per cent of GDP, broadly in line with market expectations. However, if the fiscal deficit exceeds 3.8 per cent of GDP, it will likely trigger negative surprise and concerns not only about the potential immediate additional government borrowing,