Agriculture

Fitch's India arm says farm support to raise states’ deficit in election year

Updated : January 21, 2019 01:12 PM IST

The aggregate budget deficit of Indian states is estimated to increase to 3.2 percent of gross domestic product in the next financial year beginning April, compared with 2.8 percent estimated for the current year, Devendra Pant, chief economist of India Ratings and Research, said.

Fitch's India arm says farm support to raise states’ deficit in election year

The cumulative fiscal deficit of Indian states is expected to rise following the announcement of farm support packages ahead of national elections due by May, India Ratings and Research, the Indian arm of Fitch Ratings, said on Monday.

"The competitive populism, in the nature of farm loan waivers and other financial support schemes, is hitting the capital spending and state finances," he said.

($1 = 71.3690 Indian rupees)

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