Fitch Solutions has downscaled its economic growth forecast for the Philippines this year to 5.3% from the previous 5.8%, citing ongoing lockdown measures in main business hub Metro Manila and surrounding provinces and the country’s ‘slow’ vaccine rollout.
The second wave of the coronavirus pandemic has posed a downside risk to economic activity in the April-June quarter of financial year 2021-22. However, the finance ministry said it expects a muted economic impact compared with the first wave.
The finance ministry’s department of economic affairs (DEA) in its monthly economic review for April said: “The second wave has posed a downside risk to economic activity in the first quarter of 2021-22. However, there are reasons to expect a muted economic impact compared with the first wave. Learning to ‘operate with Covid-19’, as borne out by international experience, provides a silver lining of economic resilience amidst the second wave.”
India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday. The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022). We at Fitch Solutions forecast the Indian central government deficit to come in at 8.3 per cent of GDP in FY22, it said. Revenue shortfall remains the main driver of our wider deficit view, as we expect the government to maintain its spending targets.
Fitch Solutions had previously projected a fiscal deficit of 8 per cent.
Synopsis The main driver of our deficit forecast revision is a downward revision to our outlook for revenues, given that the flare-up in COVID-19 cases in India and containment measures in place will hamper India s economic recovery, which will have a negative impact on fiscal revenues, Fitch Solutions said.
One area expected to see increased spending is on the rural employment scheme MGNREG.
India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday.
The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the GDP in FY22 (April 2021 to March 2022).
India may breach fiscal deficit in FY22 amid revenue shortfall, says Fitch
The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022)
PTI | May 7, 2021 | Updated 14:42 IST
India is likely to breach its fiscal deficit target in the financial year to March 2022 mainly due to revenue shortfall, Fitch Solutions said Friday. The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022). We at Fitch Solutions forecast the Indian central government deficit to come in at 8.3 per cent of GDP in FY22, it said. Revenue shortfall remains the main driver of our wider deficit view, as we expect the government to maintain its spending targets. Fitch Solutions had previously projected a fiscal deficit of 8 per cent.