Fiscal deficit may dip to 3.5% on AGR dues payment: SBI

New Delhi: The fiscal maths of the government will change significantly if it is able to recover Rs 1.20 lakh crore through AGR dues, resulting in the fiscal deficit for the current fiscal reducing to 3.5 percent of GDP.

“The fiscal arithmetic will change significantly post 16th March 2020 (the date till which telecom companies have to pay their AGR dues). If we assume that the Government is able to collect Rs 1.20 lakh crore through AGR dues, the fiscal deficit for FY20 will reduce to 3.5 percent of GDP,” the SBI said in a research report.

Recently in the Budget, Finance Minister Nirmala Sitharaman announced the use of escape clause under the FRBM Act by 0.5 percentage point to raise the deficit to 3.8 percent from 3.3 percent in current fiscal. (IANS)

Also Read: ‘Fiscal slippage announced in Budget is modest’

Also Watch: State BJP President Ranjeet Dass faces black flag protest in Titabor