Kolkata: Union Bajaj Union’s income secretary on Friday said that the country’s fiscal deficit would drop once the income began to grow.
Speaking at a webinar held by Bengal of the Chamber of Commerce and Industry (BCCI), Bajaj said that the government had adopted a loose fiscal policy on the background of increasing capital expenditure.
“The current fiscal deficit is 6.9 percent of GDP.
The target for 2025-26 is to reach 4.5 percent.
If we continue to grow our income, the fiscal deficit can fall 0.1 or 0.2 percent”, he said.
Next year, the targeted fiscal deficit is 6.4 percent, said Bajaj, adding that the government has the opportunity to reduce it further.
“But the increase in capital expenditure nearly 35 percent has forced us to maintain the fiscal level at that level”, he added.
Revenue Secretary said since last year, the center had begun to give money to countries to produce capital expenditure.
Unless this is done, the last mile infrastructure will not occur, Bajaj added.
“The government’s goal is to maintain GDP growth.
So only revenue and income will be better”, he said.
In the taxation section, he said his emphasis was to maintain stability so that it was too little playing.
On direct tax, he said 55 percent of revenue in this number came from transactions based on TDS.
Bajaj said the increase in capital expenditure would lead to increased consumption and expenses.