Govt meets FY19 fiscal deficit target as spending cuts offset lower tax collection

India has met the fiscal deficit target of 3.4 percent of gross domestic product in 2018/19 fiscal year ended March 31, by cuts in state spending and higher borrowings from small savings funds, a government source told reporters on Tuesday.

The government missed the tax collections target by over 1 trillion rupees ($14.41 billion), including about 500 billion rupees shortfall in income tax receipts, said the source, who requested anonymity.

The official declined to share further details about expenditure cuts in the fund allocations to different ministries.