New Delhi, April 24 (KNN) Achieving a 3 per cent fiscal deficit target by 2017-18 is a challenge but the government will not compromise on building public infrastructure and irrigation, Finance Minister Arun Jaitley said today.
 
"I am glad we have achieved the 4.1 per cent fiscal deficit target of last year. The journey to 3 per cent has various challenges," he said replying to a question in the Lok Sabha.
 
Recommendations of the Pay Commission for Government employees, as well as the additional ten per cent fund devolution to states would cause additional burden on the Government.
 
However, Jaitley said, that public investment has to go in to infrastructure as private sector was usually reluctant to put in funds there. Government has targeted Rs 70,000 crore investment in infrastructure in the current fiscal.
 
As per the fiscal consolidation roadmap outlined in 2015-16 Budget, fiscal deficit is to be brought down to 3.9 per cent of GDP in current fiscal, then to 3.5 per cent in 2016-17 and further to 3 per cent by 2017-18.
 
The 3 per cent target would now to reach a year later than planned earlier. (KNN/DB)