Budget 2018: Economists meet Arun Jaitley, divided on fiscal road map

The Centre is grappling with the question of its fiscal roadmap not only for this year but for 2018-19

Finance Minister Arun Jaitley met economists and policy experts for pre-Budget consultation on Monday. A number of issues raised, including on raising of minimum pension levels and reducing corporate taxes.

However, the economists were divided on the fiscal deficit. Some wanted the government to stick to the fiscal deficit target of 3.2 per cent of gross domestic product. Others said the short-term economic disruptions due to policy changes did merit fiscal slippage.

“I am sure they (the government) will stick to the deficit target. I think there is a political commitment to do this, though operational constraints may vary,” Rathin