Going for growth, India set to borrow more, say economists
Updated : July 03, 2019 09:32 AM IST
After winning a second term by a landslide a little over a month ago, Prime Minister Narendra Modi's government's first budget since then is forecast to echo an interim budget from February in borrowing to spend more on social welfare.
The most common reply provided by forecasters for fiscal 2019-20 was 3.4 percent, followed by the highest forecast of 3.6 percent, suggesting scope for some surprise when newly-appointed Finance Minister Nirmala Sitharaman tables her budget on Friday.
In recent years, India has managed to rein in the budget deficit, mostly through higher fuel taxes and subsidy cuts. But the concern now is how Sitharaman will maintain fiscal prudence when tax revenues have shrunk more than previously expected.