Wednesday, 25 January 2017

Centre to deliver a popular, but not a populist Budget 2017: Nomura

Budget

Budget 2017 - In the upcoming Union Budget, the Centre may set an ambitious fiscal deficit target of 3% of the gross domestic product (GDP) in 2017-18, according to a report by Nomura.

“We expect the government to stay on the path of fiscal consolidation, targeting its fiscal deficit at 3% of GDP in FY18, in line with the roadmap set last year and against 3.5% in FY17. If we are correct, this would be a positive surprise to the Bloomberg consensus which expects a deficit of 3.3% of GDP,” Nomura said in its report on Tuesday.

While Goldman Sachs said in its research report that the government will set a fiscal deficit target of 3.3% of GDP, a State Bank of India internal research had pegged it at 3.4% of GDP, according to Press Trust of India.

Here is a list of what could be expected from the upcoming Budget this year:

Govt to cash in from four major revenue sources: According to the report, the government will gain Rs 65,000 cr, accounting 0.4% of the GDP, from asset sales and disinvestment ventures.

Another Rs 30,000 cr would accrue from a special dividend from the Reserve Bank of India due to its extinguished liability out of the demonetisation drive Reducing reserve(Read More)

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