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No need to amend FRBM Act as it provides headroom for big fiscal slippage beyond 0.5% of GDP

Updated : May 30, 2020 01:19 PM IST

The wriggle room provided by the FRBM Act goes much beyond the 0.5 percent escape clause, to accommodate big fiscal slippages.
The FY20 March end fiscal deficit now stands at 4.59 percent against the 3.8 percent revised target, a breach of 0.7 percent or a Rs 1.69 lakh crore gap.
The impact of the COVID-19 led lockdown on government's finances for April is most evident in the negative growth in CGST, Income Tax and customs collections.
No need to amend FRBM Act as it provides headroom for big fiscal slippage beyond 0.5% of GDP

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