Need new consolidation path to contain fiscal deficit by 2029: Subhash Garg

Former finance and economic affairs secretary said there is a need to go back to the FRBM and retain the fiscal deficit to 3% of GDP as the target of 4.5% is not good enough. “We should go back to the FRBM regime. I am comfortable with the formulation which was adopted in 2018 – 3% fiscal deficit and 40% debt to GDP ratio. I do not think 4.5% even as a goal is a good idea. We cannot allow debt build up and therefore we should have a new fiscal consolidation path for the five years to bring the fiscal deficit down to 3% by the last year of the government, 2028 -29,” Garg said during Fortune India pre budget roundtable.