"Because government was in denial", the former Finance Minister said on Twitter.
The government is determined to keep fiscal deficit at 3.3 per cent of GDP on the back of buoyant tax revenues and expectations of surpassing the disinvestment target, Finance Minister Arun Jaitley said Saturday but remained non-committal on cutting tax on petrol and diesel. Prime Minister will also be brain storming over economic issues and "state of the economy" with economists and senior government officials on Saturday. The government is under pressure from the opposition parties over high fuel prices.More news: Man drives auto into crowd in southern France leaving two injured
"With regard to GST and other indirect taxes, GST is settling down and with the kind of pickup in consumption which has taken place, it will have an impact on GST collection in future months and we're confident that between direct and indirect tax collections, govt would comfortably meet target", Jaitley told reporters.
"The government is confident that we will have a growth rate higher than what we had projected earlier this year in the Budget", he said.More news: Aggies more valuable than Longhorns
"The government is confident and will strictly maintain the 3.3 percent fiscal deficit target", said Jaitley, adding Modi expressed satisfaction on the macro-economic data that has so far emerged for this year.
Jaitley expressed confidence of meeting both direct tax, indirect tax and non-tax revenue targets for 2018-19. "In relation to Masala bonds there will be exemption from withholding tax for issuance done in this year (March 31, 2019)", he said. "There is phenomenal increase in the assessee base.in the quantum of advance tax which has been paid", he said. On August 31, the Controller General of Accounts (CGA) said the fiscal deficit for April-July was Rs 5.40 lakh crore. The tax cuts were effective from 27 July. Direct tax collections will be in excess of budget target. "We are now seeing the impact of demonetisation on direct taxes", said M.S. Mani, partner, Deloitte India. Mr Jaitley said that a series of more measures will be announced in coming days to help in current account deficit. It was made a decision to permit manufacturing sector entities, avail external commercial borrowing upto $ 50 million with minimum maturity of one year, against the earlier norm of three years. It has also been chose to permit manufacturing entities to avail European Central Bank facility with minimum maturity of one year, instead of the earlier limit of three years, Jaitley said. Masala bonds are rupee-denominated instruments through which Indian entities can raise funds by accessing overseas capital markets.More news: Mayors’ group voices support for Toronto in council-cutting fight against Ontario
The Government hoped that these measures will have impact up to $10 billion and bring some stability in rupee.