The Centre will miss the fiscal deficit target of 3.3% of gross domestic product set in the Budget for the current financial year, a top policy adviser said on Thursday, adding that he believes the government will cut personal income tax rates.
Bibek Debroy, chairman of the Prime Minister’s Economic Advisory Council (PMEAC), told a website in an interview that he expects fiscal deficit to rise since the growth rate envisaged in the Budget may not be realised.Debroy said there could be a substantial reduction in income tax rates. While he did not say when the cut was expected, he said logic of the corporate tax cut, announced last month, suggested that it could.