• SENSEX
    NIFTY 50
VIDEOS
Economy

Tough for the government to meet the 3.3% fiscal deficit target for FY19, says StanChart

Updated : December 28, 2018 09:46:05 IST

MS Gopikrishnan of Standard Chartered Bank says it is tough for the government to meet the 3.3 percent fiscal deficit target for the current financial year.

The government data released on Thursday showed that the fiscal deficit in the April-November period stood at Rs 7.17 lakh crore or 114.8 percent of the budgeted target for the fiscal year that ends in March. The government is also mulling a basic farm income to all farmers which could amount to Rs 1 lakh crore.

"Although there would be slippages in the fiscal deficit target the government does have control on the cash balance," said Gopikrishnan.

According to him, the fiscal deficit number wasn't a big surprise as there has been a short fall in the revenue collection, which gets reflected in the numbers. However, the farm distress subsidy was a surprise, he said.

The bond markets will definitely react negatively, said Gopikrishnan, adding that the support of OMO could cap the yield rise in the coming days.

The bond yields are likely to remain between 7.2-7.3 percent and with the OMO purchases going through, the yields will remain range bound in January and February, he said.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV

recommended for you

Advertisement