Preview: India budget to deal with fallout from COVID-19 pandemic, says Barclays
The Covid-19 pandemic and its accompanying economic damage will have a multi-year effect on India’s fiscal profile. FY21-22 will begin the repair work. Finance Minister Nirmala Sitharaman faces the task of balancing support to the economy as India aims for a rapid return to growth against signalling a commitment to fiscal consolidation over the longer term.
Barclays forecast that India’s consolidated fiscal deficit will reach 14% of GDP (central: 7.7%; state governments: 5.0%; off-balance sheet items: 1.3%) during FY 20-21: Reuters