India may miss FY 14 fiscal deficit target: DBS

Posted By: Religare
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India may miss FY 14 fiscal deficit target: DBS
According to a PTI report, Singaporean brokerage DBS reckons that the Indian government may have missed its fiscal deficit target for the fiscal year which ended on March 31, 2014 amid underwhelming tax revenues, clouding the outlook for Asia's third biggest economy that has grown below the 5 per cent mark for the past few quarters.

The government may have overshot the target for fiscal shortfall in FY 2013-14 by 0.2 to 0.3 per cent with the deficit likely to stand at 4.8 to 4.9 per cent of the country's gross domestic product (GDP) for the fiscal, DBS said.

In his interim budget speech, Finance Minister P Chidambaram had revised downwards the fiscal deficit target for FY 2013-14 from 4.8 per cent of India's GDP to 4.6 per cent on higher dividends from public sector run units.

"The (Indian) government had estimated that last year's fiscal deficit was contained at 4.6 per cent, lower than the 4.8 per cent goal. However, the trends between April 2013 and February 2014 belie that optimism," the Singaporean brokerage firm said in a note", the PTI reported.

"The final deficit could be adjusted higher when the numbers are available in late May," it said, the PTI reported.

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