Budget preview: Consolidating under the cover of growth says Nomura
In Nomura’s base case, they expect the centre’s fiscal deficit to narrow to 5.3% of GDP in FY22 from a projection of 6.8% in FY21. The Union Budget for FY22 (year-ending March 2022) will be presented on 1 February. In this note, Nomura presents their assessment of FY21 and expectations for FY22. The central government’s fiscal deficit widened to 6.8% of GDP in FY21, nearly double the original budget target of 3.5%, but better than previously feared (8%), aided by a sequential improvement in revenues and a muted rise in spending.
Nomura expects the fiscal deficit target to be set at 5.3% of GDP in FY22: Reuters