Relax fiscal deficit limit from 3% to 4% of GDP, states ask Sitharaman

Some state governments have asked Union Finance Minister Nirmala Sitharaman to raise their permissible fiscal deficit limit, from the current 3 per cent of gross state domestic product (GSDP) to 4 per cent, after adjusting for inflation.
 
"The biggest take-home from the pre-Budget discussion of the FM (Sitharaman) is a suggestion by Bihar and Kerala to raise (this) limit," tweeted Kerala Finance Minister Thomas Isaac.
 
State FMs had met Sitharaman for a pre-Union Budget interaction. "This suggestion was agreed to by a large number of states," Isaac tweeted further. "In the current year, the real expenditure of states