A new controversy on India’s fiscal deficit
Recently in his blog, S C Garg, former Economic Affairs secretary, has claimed that the actual fiscal deficit for the last financial year and the current one is more than a full percentage point higher than the official data.

Reason for the Controversy

Some of the government’s expenditure was funded by the so-called “off-budget” items.
As a result, while this extra expenditure did not figure in the official calculations, it did mean that the true fiscal deficit or borrowing by the public sector was higher than the level presented in the Budget.

In his blog, he said that the true fiscal deficit for 2018-19 is 4.7% — more than a full percentage point than the number claimed by Finance Minister Budget in July.

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