The Economic Survey has stressed the need to anchor fiscal consolidation on structural reforms in expenditure.
It has also specified that a new fiscal responsibility and budget management (FRBM) framework is on the anvil. The general budget slated for Friday may give an indication of this roadmap.
This new framework is likely to factor in the developments in the current fiscal and indicate the correct fiscal consolidation path for the medium term, the Survey said.
The Economic Survey has recognised that there will be a slippage on the deficit targets although efforts are afoot to minimise them. This is essentially an exceptional year when a whole host of factors have turned out differently than envisaged at the time of presentation of budget.
It has also recognised that a sharp slowdown in industry has led to revenue growth at a less-than-estimated pace. Also, additional expenditure arose from the stickiness in high global commodity prices, particularly crude petroleum and fertilisers.
Besides, the financial market conditions were not appropriate for going ahead with the scheduled disinvestment plan.