India’s fiscal deficit may increase: Goldman Sachs
February 20th, 2009 - 2:55 pm ICT by IANSNew Delhi, Feb 20 (IANS) India’s consolidated fiscal deficit may increase to 10.3 percent of gross domestic product (GDP) this fiscal and 10 percent the next year, according to an estimate by global investment bank Goldman Sachs.
“We do not think that the deficit will come down substantially over the next few years,” Tushar Poddar, economist with Goldman Sachs, said in a statement.
“The increase in the supply of government securities may not be accompanied by a similar increase in demand, especially as the private sector increases credit demand towards the latter half of FY10,” Poddar Said.
“Therefore, we think that the long end of the yield curve will remain under selling pressure, and risk-free rates may rise,” he added.
Minister for External Affairs Pranab Mukherjee, while presenting the interim budget Feb 16, had pegged the current fiscal’s deficit at 6 percent of GDP, but hoped it would come down to 5.5 percent in the next financial year.
“We should not be too much obsessed with fiscal deficit,” he had said, adding: “Of course, corrective measures have to be taken when the revenues have revived.”
Finance Secretary Arun Ramanathan shared the view. “In the backdrop of the current situation, high fiscal deficit is inevitable,” he told reporters after Mukherjee’s budget speech.
- India to grow at 8 percent next fiscal: Goldman Sachs - Dec 04, 2009
- India to target 7.5-8 percent growth in 2012-13: Pranab - Feb 23, 2012
- Highlights of economic review by prime minister's council - Feb 21, 2011
- Mukherjee pegs fiscal deficit at 4.6 percent for next fiscal - Feb 28, 2011
- India's sovereign rating suffers as deficits balloon - Feb 24, 2009
- India hopeful of 4.6 percent fiscal deficit target - Sep 06, 2011
- India unlikely to meet fiscal deficit target: FICCI - Aug 31, 2011
- High fiscal deficit inevitable, says government - Feb 16, 2009
- India may slow down to 8.4 percent in 2011: World Bank - Jan 13, 2011
- India's 8.9 percent July-September growth beats forecasts (Roundup) - Nov 30, 2010
- RBI Governor meets Pranab Mukherjee ahead of policy review - Apr 29, 2011
- Highlights of Prime Minister's Economic Advisory Council report - Aug 01, 2011
- 8.2 percent growth projection not disappointing: Pranab - Aug 02, 2011
- S&P; cuts Spain rating - Apr 27, 2012
- Indian economy may grow at 8 percent in 2012-13: Rangarajan (Lead) - Feb 22, 2012
Tags: 10 percent, arun, backdrop, budget speech, corrective measures, current situation, economist, external affairs, finance secretary, fiscal deficit, gdp, global investment bank, goldman sachs, government securities, gross domestic product, interim budget, New Delhi, pranab mukherjee, ramanathan, yield curve