Icra sees budget pegging fiscal deficit at 4.9-5%
The budget is likely to revise revenue receipts upwards by Rs 1.2 trillion in FY25, while pegging a relatively shallower increase in the revenue expenditure.
MUMBAI: The record dividend from the central bank (Rs 2.11 trillion) is set to help the finance minister Nirmala Sitharaman to peg a lower fiscal deficit target at 4.9-5 per cent in the forthcoming full budget, down from the interim budget estimate of 5.1 per cent of GDP this fiscal. It is unlikely to compress the capex target of Rs 11.1 trillion, says a report.
Consequently, Icra Ratings believes that there is a high likelihood of reducing the net market borrowings by Rs 350-550 billion as against the interim budget estimate of Rs 11.8 trillion. It would augur well for yields, along with the demand boost for government securities (G-secs) due to their inclusion in the JP Morgan bond index.
The budget is likely to revise revenue receipts upwards by Rs 1.2 trillion in FY25, while pegging a relatively shallower increase in the revenue expenditure target, largely focused on the rural economy.
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