The Indian government will meet the fiscal deficit target of 3.3 percent of gross domestic product (GDP) for the current fiscal year, the country's Finance Minister Arun Jaitley said.

It would be possible to meet the target as direct tax collections are expected to remain above estimates, and the government hopes to cross the disinvestment target of Rs 80,000 crore, he said.

A day after announcing a set of measures to contain the widening deficit, the minister spoke after emerging from a two-day brainstorming session with Prime Minister Narendra Modi on the state of India's economy in New Delhi on Saturday.

Jaitley told reporters that the government would go ahead with its planned capital expenditure without any cut.

The government also expects to exceed the GDP growth target of 7.5 percent in the current fiscal year, he said.

“The prime minister has expressed satisfaction with regard to the broad macro-economic parameters and the data so far for this year.”

He said income tax collections had been robust with an expanding base and collections would surpass budgetary targets.

“We are confident that between direct and indirect tax collections, the government will comfortably meet the target if not surpass it,” Jaitley said.

The government had projected in the budget in February a direct tax collection of Rs 11.5 lakh crore for 2018-19.

The meeting was attended among others by all top officials of the finance ministry and the Reserve Bank of India in the backdrop of a sharp slide in the value of the Indian rupee vis-à-vis US dollar and decline in India's foreign exchange reserves.

The Indian currency fell by 13 percent since January this year, making it the worst-performing national currency in Asia and straining the government's finances.

India's current account deficit jumped to 2.4 percent of GDP in the first quarter of 2018-19 from 1.9 percent in the previous fiscal year.

A sharp depreciation of the rupee and a spike in the price of crude oil have led to a rise in the deficit.

To contain the deficit and the fall in the rupee, the government had Friday eased overseas borrowing norms for manufacturing companies, removed restrictions on foreign portfolio investor investment in corporate bonds, check import of non-essential items and boost exports.

The government is particularly worried over rising petrol and diesel prices in view of coming elections in three states ruled by Bharatiya Janata Party in the next couple of months and the national polls due early next year.

However, the government is unlikely to go for any significant cuts in taxes and duties on petrol and diesel prices as this would lead to a fall in revenue and put a stress on the funds.