<h1>India Sets Fiscal Deficit at 3.2% of GDP for 2017-18, Aiming for 3% in 2018-19; Capital Expenditure Rises 25.4.</h1> The fiscal deficit for 2017-18 is set at 3.2% of GDP, with a target of 3% for 2018-19. Total expenditure for 2017-18 is Rs. 21.47 lakh crore, with Rs. 4.11 lakh crore allocated to states and union territories. Defence spending, excluding pensions, is Rs. 2,74,114 crore, and scientific ministries receive Rs. 37,435 crore. The focus is on revenue and capital expenditure, with a 25.4% increase in capital expenditure. Revenue deficit is reduced to 2.1% for 2016-17 and pegged at 1.9% for the next year. Higher tax realization from demonetization is expected to aid fiscal improvement.