Economics
Citi Sees India’s Budget Gap Widening the Most in Three Decades
People queue outside a bank as they wait for their turn during nationwide lockdown in Faridabad on April 20.
Photographer: Money Sharma/AFP via Getty Images
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India’s budget deficit is seen widening the most in more than three decades as weaker economic growth and stimulus to combat the impact of the coronavirus weighs on the government’s finances, Citigroup said in a report.
The federal government’s budget gap will be about 8% of gross domestic product in the year to March 2021, according to Citi. That’s the widest since 1987, when the shortfall was 8.4%.