Budget 2014: Fiscal Deficit target may be revised upwards:
SBI Research
03/07/2014 13:22
According to experts, the upcoming union budget may see an upward revision to the government’s fiscal deficit target even as the Narendra Modi government battles to mend public finances in Asia’s third biggest economy, which has grown below the 5 per cent mark for the past two fiscals.
A report by the Economic Research Department of State Bank of India (SBI) expects Arun Jaitley, the country’s new finance minister to announce an upward revision in the fiscal deficit target as a percentage of India’s GDP to 4.42 per cent for FY 2014-15 from 4.1 per cent estimated in the interim budget in February.
"We can have a higher deficit number, possibly at 4.42 per cent without disturbing the borrowing estimates pegged at Rs 5.29 trillion in the interim budget as we believe the government can mobilise a significant amount of revenue through disinvestment given the current buoyant market conditions," the report by SBI said, the PTI reported.
The Union Budget 2014 to be unveiled on July 10 will be the first litmus test for the new government amid high hopes that the government may announce strong reform measures to revive growth while pruning its finances.
The government could announce a timeline for the implementation of GST which has potential to boost the indirect tax kitty of the government, while it may raise the disinvestment target.
SBI doesn’t expect the government to undertake a significant downward revision to the target for spending on subsidies estimated at 1.92 per cent of GDP in the interim budget despite calls for reduction of fuel, food and fertilizer subsidies.
03/07/2014 13:22
According to experts, the upcoming union budget may see an upward revision to the government’s fiscal deficit target even as the Narendra Modi government battles to mend public finances in Asia’s third biggest economy, which has grown below the 5 per cent mark for the past two fiscals.
A report by the Economic Research Department of State Bank of India (SBI) expects Arun Jaitley, the country’s new finance minister to announce an upward revision in the fiscal deficit target as a percentage of India’s GDP to 4.42 per cent for FY 2014-15 from 4.1 per cent estimated in the interim budget in February.
"We can have a higher deficit number, possibly at 4.42 per cent without disturbing the borrowing estimates pegged at Rs 5.29 trillion in the interim budget as we believe the government can mobilise a significant amount of revenue through disinvestment given the current buoyant market conditions," the report by SBI said, the PTI reported.
The Union Budget 2014 to be unveiled on July 10 will be the first litmus test for the new government amid high hopes that the government may announce strong reform measures to revive growth while pruning its finances.
The government could announce a timeline for the implementation of GST which has potential to boost the indirect tax kitty of the government, while it may raise the disinvestment target.
SBI doesn’t expect the government to undertake a significant downward revision to the target for spending on subsidies estimated at 1.92 per cent of GDP in the interim budget despite calls for reduction of fuel, food and fertilizer subsidies.
