India Deficit to Rise as States Take On Power Companies' Debt
- Combined federal and state deficit may rise over 100 bps
- Number will be lower if fewer states opt for debt revamp
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Asia’s widest budget deficit is set to increase as India’s government implements a plan to clear debts piling up at power distribution companies.
The combined federal and state shortfall stands to widen by more than one percentage point to 8.5 percent of gross domestic product in the year through March 2016, a government official briefed reporters in New Delhi, asking not to be identified citing rules. However, the number could be lower if fewer states opt for the plan.