India estimates larger budget gap at over 7% vs. 6.8% target, Auto News, ET Auto

India could exceed its budget deficit target as the government increases spending and struggles to finalize planned asset sales, according to people with knowledge of the matter.

The gap could widen to more than 7% of gross domestic product in the year through March 31 against the target of 6.8%, people said, asking not to be identified citing rules on communications with the media. Lower divestment collections are also seen to offset gains from higher tax collections, they added.

If the latter two had been met, the deficit could have been limited to 6.3% of GDP, Bloomberg News reported in September. Since then, Prime Minister Narendra Modi’s government has announced that it will spend $ 7.2 billion to provide poor citizens with free food grains for another four months, and there has been little progress on asset sales. gigantic that had been planned.

A spokesperson for the finance ministry was not immediately available for comment.

The government is expected to seek parliamentary approval in the current session for further spending of over Rs 400 billion for fertilizer subsidies, Rs 1 trillion for the free food grain program and Rs 450 billion. additional for Air India’s accumulated losses, the people said. .

He has raised Rs 93.3 billion through the sale of stakes in state-owned enterprises so far in the current fiscal year. The government aims to raise 1.75 trillion rupees this year, but progress on plans to sell insurance giant Life Insurance Corp. or privatization of the oil refiner Bharat Petroleum Corp. were slow.

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