Govt committed to 6.4% fiscal deficit target for FY23: Report

India's macroeconomic fundamentals are strong to deal with global challenges and the central government is committed to sticking to the fiscal deficit target of 6.4 percent of the GDP for the current fiscal, sources said on Monday. The government is taking steps to deal with the spiraling crude oil prices in the international market, the sources said. India is 85 percent dependent on imports to meet its crude oil needs and a weaker rupee makes imports costlier.

Commodity prices, including crude oil, are ruling high due to the ongoing Russia-Ukraine war and have led to inflationary pressures across countries, including India.

The government is committed to sticking to the 6.4 percent fiscal deficit target, the sources said, adding that steps are being taken to address situations arising out of rising crude oil prices.

While acknowledging that there are strong global headwinds, the sources said the country's macroeconomic fundamentals are strong enough to deal with challenges.