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.
Cabinet clears Development Finance Institution with capital infusion of Rs 20000 crore ANI | Updated: Mar 16, 2021 16:29 IST
New Delhi [India], March 16 (ANI): The Union Cabinet has cleared the setting up of a Development Finance Institution (DFI) with a capital infusion of Rs 20,000 crore, announced Finance Minister Nirmala Sitharaman on Tuesday. During the Union Budget, we had mentioned that we will be setting up a national bank to fund infrastructure and developmental activities. Past attempts to have alternative investment funds were taken up, but for various reasons, we ended up with no bank which could take up long-term risk (which is very high) and fund development. Following this, Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgement of the realisation that both development and financial objectives will matter for setting up a DFI, said Sithraman while addressing a press conference.
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