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India Estimates Wider Budget Gap at Over 7% Vs 6.8% Aim

Passengers disembark from a boat beyond Jawaharlal Nehru Port in the distance in Navi Mumbai, Maharashtra, India.

Passengers disembark from a boat beyond Jawaharlal Nehru Port in the distance in Navi Mumbai, Maharashtra, India.

Photographer: Dhiraj Singh/Bloomberg

India may overshoot its budget deficit target as the government boosts spending and struggles to complete planned asset sales, according to people with knowledge of the matter.

The gap may widen to more than 7% of gross domestic product in the year through March 31 versus the 6.8% goal, the people said, asking not to be identified citing rules on speaking to the media. Lower divestment collections is also seen offsetting gains from higher tax collections, they added.