The central government's revenue collection shortfall could be around Rs 2.75 lakh crore and the fiscal deficit could be at 3.8 percent, Group Chief Economic Advisor of State Bank of India Soumya Kanti Ghosh said.
Speaking to CNBCTV18 about his expectations from Budget 2020, Ghosh said the slippage in fiscal deficit could be around Rs 80,000 crore. "That means the deficit for the current fiscal climbed up to Rs 7.8 lakh crore which will make it at 3.8 percent of GDP for the current fiscal,” he noted.
When asked about a rate cut, Ghosh said, “As of now the scope for a rate cut looks limited because even though January inflation could peak and after this, it could be coming off from that level, we expect that the inflation towards the end of the year could be below 3 percent.”
According to Ghosh, there is always a possibility of inflation getting generalised as the current price increase is not just in food items. "My sense is that the RBI could be on extended hold even though the inflation starts to come off after January print,” he added.