Former RBI governor C Rangarajan describes Budget 2017 a fairly routine one
"I must emphasise the point that changing the road map for reaching the 3 per cent fiscal deficit target over the years will make a mockery of the FRBM Act," former RBI governor said.
Terming the Union Budget 2017 as a fairly routine Budget, former RBI Governor C Rangarajan today said changing the road map to reach the fiscal deficit target of 3 percent over the year will make a mockery of the Fiscal Responsibility and Budget Management (FRBM) Act.
"It was a fairly routine Budget in the sense that there have not been much changes on the revenue side. Nevertheless, I am happy that the fiscal deficit is maintained at 3.2 percent. The original road map has set it at 3 percent," Rangarajan told CNBC TV18.
"But given the need for expenditure, I suppose some modification on that is okay. I must emphasise the point that changing the road map for reaching the 3 per cent fiscal deficit target over the years will make a mockery of the FRBM Act."
Today, in Union Budget Finance Minister Arun Jaitley proposed bringing down fiscal deficit to 3.2 percent of GDP in 2017-18 from 3.5 percent in 2016-17. "I have pegged fiscal deficit at 3.2 per cent in 2017-18 and remain committed to achieving 3 percent in the following year. With this gradual approach, I have ensured adherence to fiscal consolidation without compromising requirements of public expenditure," Jaitley remarked in his Budget speech.