The core sector growth in August declined by 0.5 percent, at the bottom of three-and-a-half years

The government has set a fiscal deficit target of 7.03 lakh crore by March 2020

New delhi date. September 30, 2019, Monday

The economic system facing the recession has suffered another setback. According to data released by the central government, growth in core sector has declined to 0.5 percent in August.

Which shows a three-and-a-half year low. The measures taken by the government to bring the economy out of recession have not seen any significant impact.

The eight sectors in the core sector include coal, crude oil, natural gas, refinery products, cement, fertilizers, electricity and fertilizers. The core sector growth in August last year was 4.7 percent.

Earlier in November 2015, the core sector's growth was minus 1.3 percent. According to data released by the Ministry of Commerce and Industry, the growth rate of coal, crude oil, natural gas, cement and electricity was minus 8.6 percent, minus 5.4 percent, minus 3.9 percent, minus 4.9 percent and minus 2.9 percent, respectively. However, the growth of the fertilizer and steel sector saw a growth of 2.9 per cent and 5 per cent.

On the other hand, the country's fiscal deficit has risen to Rs 5.54 lakh crore by the end of August. It is worth mentioning that the target for fiscal year 2019-20 is to keep the fiscal deficit at 7.03 lakh crore. 78.7 per cent of the amount is due by the end of August.

However, by the end of August last year, the fiscal deficit had grown to 86.5 percent of the budgetary amount. In other words, the government has set a target to keep the fiscal deficit at 3.3 percent of GDP. It is worth mentioning that recently the government will reduce the corporate tax by reducing the revenue of the government by Rs 1.45 lakh crore.