Centre planning to loosen fiscal deficit target, spend Rs 50,000 crore to revive economy: Reuters
India’s GDP growth for the quarter that ended on June 30 had sunk to a three-year low of 5.7%.
The Narendra Modi government is considering a plan to loosen the fiscal deficit target for the 2017-’18 financial year, Reuters reported on Thursday. This would enable the Centre to spend an additional Rs 50,000 crore to revive the economy, two unidentified government officials told the news agency.
Union Finance Minister Arun Jaitley on Wednesday had said that the government was considering ways to boost economic growth, which reached a three-year low of 5.7% in the quarter that ended in June.
Jaitley, who had refused to divulge details, had said the government would unveil the necessary steps once Prime Minister Narendra Modi signs off on them. “We have taken note of all economic indicators available,” Jaitley said after holding meetings with his Cabinet colleagues and other government officials.