India s finance minister, Nirmala Sitharaman, set a fiscal deficit target of 6.8% of GDP for the year ending March 2022, while for the current financial year it is estimated to jump to 9.5% - nearly thrice the government s target of 3.5% set before the pandemic struck.
India's fiscal deficit target for 2021/22 is a little bit higher than expected, a Moody's analyst said on Monday, after the government presented its federal budget to reignite economic growth hamstrung by the coronavirus pandemic. India's finance minister, Nirmala Sitharaman, set a fiscal deficit target of 6.8% of GDP for the year ending March 2022, while for the current financial year it is estimated to jump to 9.5% - nearly thrice the government's target of 3.5% set before the pandemic struck.
The Straits Times
India doubles spending on healthcare in annual budget
India currently spends about 1 per cent of GDP on health, among the lowest for any major economy.PHOTO: EPA-EFE
PublishedFeb 1, 2021, 4:56 pm SGT
https://str.sg/JKFe
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Synopsis
India s finance minister, Nirmala Sitharaman, set a fiscal deficit target of 6.8% of GDP for the year ending March 2022, while for the current financial year it is estimated to jump to 9.5% - nearly thrice the government s target of 3.5% set before the pandemic struck.
Reuters
The government also said it aims to bring down the fiscal deficit to 4.5% of GDP by 2025/26.
MUMBAI: Moody s Investors Service, while silent on the sovereign rating on the higher-than-expected fiscal deficit numbers, expressed doubts over attaining the higher revenue targets and divestment realisation as assumed in the Budget.
The Union Budget 2021-22 has pegged a fiscal deficit of 9.5 per cent for the current financial year as against the consensus 7 per cent, and 6.8 per cent for 2021-22 with a market borrowing of around Rs 12 lakh crore. It also assumes Rs 1.75 lakh crore to be scooped up from divestment.