The Budget, which is to be unveiled in the first week of July may surprise with a fiscal deficit figure of around 5.5 per cent, HDFC Bank has said. We believe that the Budget will take a step towards fiscal consolidation and the fiscal deficit target will be in the neighborhood of 5.5 per cent against market expectations of 6-6.5 per cent, the bank said in its report.
The report also said that there are fears in the market of a high fiscal deficit on the back of opinion of continuing of the stimulus packages by the government to boost the growth.
The report said that the government''s net and gross borrowings was unlikely to be very different from the Rs 3,08,647 crore and Rs 3,61,782 crore figure announced earlier in the year.
Moreover, the bank predicted a roll-back (at least partially) of the indirect tax reductions announced in December 2008 and February 2009 as a part of the fiscal stimulus.
It also said that these along with the natural revenue buoyancy associated with economic recovery should keep the interim revenue target supported through FY''10.
The report also said that there are fears in the market of a high fiscal deficit on the back of opinion of continuing of the stimulus packages by the government to boost the growth.
The report said that the government''s net and gross borrowings was unlikely to be very different from the Rs 3,08,647 crore and Rs 3,61,782 crore figure announced earlier in the year.
Moreover, the bank predicted a roll-back (at least partially) of the indirect tax reductions announced in December 2008 and February 2009 as a part of the fiscal stimulus.
It also said that these along with the natural revenue buoyancy associated with economic recovery should keep the interim revenue target supported through FY''10.
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