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  India   All India  04 Jul 2019  Economic Survey: ‘Sticking to fiscal deficit target important,’ says CEA Subramanian

Economic Survey: ‘Sticking to fiscal deficit target important,’ says CEA Subramanian

PTI
Published : Jul 4, 2019, 4:24 pm IST
Updated : Jul 4, 2019, 4:24 pm IST

‘It is important to stick to fiscal deficit path, otherwise there is risk of crowding out of investment,’ Subramanian said.

The government resorts to market borrowings through government securities and treasury bonds to meet the gap between expenditure and revenue, popularly known as fiscal deficit. (Photo: ANI)
 The government resorts to market borrowings through government securities and treasury bonds to meet the gap between expenditure and revenue, popularly known as fiscal deficit. (Photo: ANI)

New Delhi: Chief Economic Adviser K V Subramanian on Thursday stressed that the government should stick to the fiscal consolidation path or risk crowding out investment due to large public borrowings.

The Economic Survey, tabled in Parliament on Thursday, pegged the fiscal deficit for 2018-19 at 3.4 per cent of the GDP, the same level as projected in the interim Budget.

 

“It is important to stick to fiscal deficit path, otherwise there is risk of crowding out of investment,” Subramanian told reporters in New Delhi. The government resorts to market borrowings through government securities and treasury bonds to meet the gap between expenditure and revenue, popularly known as fiscal deficit.

While the Survey has retained the fiscal deficit estimate for 2018-19 at 3.4 per cent, the general fiscal deficit -- Centre and states combined -- has been pegged at 5.8 per cent in 2018-19, down from 6.4 per cent in the previous fiscal.

Tags: economic survey 2019, k v subramanian, chief economic adviser, new delhi
Location: India, Delhi, New Delhi