Govt confident of meeting fiscal deficit target despite GST shortfall

Centre expects direct taxes to overshoot target by Rs 300 billion

The Narendra Modi government expects direct tax collections to exceed the budgeted target by at least Rs 300 billion. 

This, along with the portion the Centre can pick up from the goods and services tax (GST) compensation kitty, will help it meet the fiscal deficit target of 3.3 per cent of gross domestic product (GDP) for 2018-19, top government sources told Business Standard.

The fiscal deficit for April-October has come in at Rs 6.49 trillion, breaching the full-year target of Rs 6.24 trillion.

Finance Minister Arun Jaitley has publicly stated the fiscal deficit target will be met without cutting capital