The Department of Economic Affairs (DEA) said on Friday that the revised gross domestic product (GDP) estimate for 2018-19 to 7 per cent is at a higher base.
A day earlier, the Central Statistics Office (CSO) lowered the FY 19 GDP growth in second advance estimate of national income to 7 per cent from 7.2 per cent in the first advance estimate.
The de-growth was mainly attributed to a slowdown in agriculture and manufacturing.
However, DEA Secretary Subhash Chandra Garg said the second advance estimate factors in a higher base. “The growth needs to be looked at considering the higher base,” he said.
Garg said the increased contribution from the National Social Security Fund (NSSF) from Rs 75,000 crore to Rs 1.25 lakh crore will help bridge the fiscal deficit. The increase in funds is due to higher inflow of small savings.
At the same time, said Garg, the government expects better tax collections by March end to help meet the fiscal deficit target of 3.4 per cent of the GDP for 2018-19.