From the upcoming Budget for the FY 2020-21, the country's financial industry eyes better transparency as per a report by DBS, a Singapore-based banking entity.
As per the report India Budget Preview: Loosening the purse released on Thursday, with breach on the fiscal deficit front already that is bound to negatively impact credit situation in the short term, steps of balancing it with a reasonable consolidation plan need to be taken up.
Further, as highlighted in the first eight months of FY20 up to November, fiscal deficit has move higher by 15% in comparison to what was budgeted in the Union Budget 2019. On the aggregate basis, however expenditure is in line with the plans.
This fiscal deficit situation is not uncommon as it is in the first 3 quarters of a financial year that it worsens and then moderates in the last and final quarter. This is due to a rollback in expenditure and inflow of seasonal revenue, said DBS economist Radhika Rao.
But in the current situation, the turnaround in the last quarter is unlikely coming and shall not be able to tackle ballooning fiscal deficit.