Economy Budget 2020: Government may peg fiscal deficit target for FY21 at 3.4% Updated : January 20, 2020 01:54 PM IST Dividend transfer by the RBI and the decision by the finance ministry to cap government spending by different ministries in the last quarter could provide some cushion to the Centre's finances. The Union Budget for the fiscal year 2020-2021 might see some tweaks in personal income tax slabs or even the rates but they are likely to be minor. For next year, with a fiscal deficit target of 3.4 percent, it expects gross borrowings to be close to Rs 7.7 trillion. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.