Have no reason to double government commitment on fiscal targets

Mumbai: Governor Shaktikanta Das on Friday said the Reserve Bank has no reason to doubt the government commitment to meet the fiscal deficit target this fiscal despite the massive tax giveaways of Rs 1.45 lakh and falling indirect tax collections.

The budget has set fiscal deficit target at 3.3 percent for the current fiscal but the steeply falling GST collection and the historic cut in corporate taxes have raised concerns over the possibility of meeting the target.

Many analysts are of the view that the government will miss the target by a wide margin of 70-80 bps.

He said the government has several sources of revenue to meet the fiscal target.