India Says Challenging to Meet Next Fiscal's Budget Deficit Goal
- Says FY17 budget deficit goal may need to be reassessed
- Higher tax collections to help meet FY16 deficit target
This article is for subscribers only.
India warned that it may have to reassess its budget deficit projections for the next fiscal year if growth slows, though higher tax revenues will offset a shortfall in asset sales and help meet this year’s target.
The government’s steps to boost taxes will help it reach its deficit target of 3.9 percent of GDP in the year through March 2016, the Finance Ministry said in its mid-year review published Friday. The 3.5 percent goal for the following 12 months could be pressured by an expected increase in state salaries and higher military pensions, it said.