New Delhi, Feb 10: Union finance minister Arun Jaitley fiscal situation will improve in coming year 2019 as far as revenues are concerned. He was speaking after his post-budget meeting with members of the RBI board.
In this year budget, government’s plans to spend Rs 2.11 lakh crore to recapitalise PSBs in a major step to restore the banking system’s health.
The government missed the fiscal deficit target of 3.2% of GDP for the current financial year due to the introduction of GST and is now expected to close the year at 3.5%. For the next year, it has budgeted for fiscal deficit of 3.3% of GDP.
Jaitley also described the monetary policy committee’s decision to hold rates steady as a “balanced one” and added that he was seeing signs of a higher credit demand. In the past the government had blamed high interest rates as one of the factors for weak loan demand and had demanded a reduction in rates.