Reuters reports quotes five Indian government officials and advisers, as saying that India is likely to miss its fiscal deficit target for the current financial year due to a sharp slowdown in tax collections that negate the impact of the additional dividends from the Reserve Bank of India (RBI).
Key Quotes:
The government could toward the end of 2019 be forced to raise the fiscal deficit target to 3.5% of GDP from 3.3%, amid pressure for additional stimulus measures.
Tax collections could fall by as much as 1 trillion rupees ($14 billion), or 4% of $344 billion annual target, noting that sharp shortfalls are expected both in goods and services tax (GST) and income tax collections.
Two government advisers said they have also urged the Prime Minister Narendra Modi-led government to defer the fiscal target to tackle the economic slowdown and outline stimulus steps to help the hard-hit sectors such as autos and textiles.
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