The government arrived at this number by assuming 11.5 per cent nominal GDP growth in 2019-20. On January 7 of this year, a CSO release stated that nominal GDP for 2017-18 was Rs 167.7 lakh crore. Further, it projected the 2018-19 nominal GDP to be Rs 188.4 lakh crore, a nominal growth rate of 12.3 per cent. Given the surprising upward revision of both real and nominal GDP growth for 2016-17 and downward revisions in other years, it is hard to predict. As the two examples showed, small adjustments to budgetary assumptions can have massive effects on the fiscal deficit.

Source: Indian Express February 06, 2019 19:07 UTC