NEW DELHI (Reuters) – The cumulative fiscal deficit of Indian states is expected to rise following the announcement of farm support packages ahead of national elections due by May, India Ratings and Research, the Indian arm of Fitch Ratings, said on Monday.
The aggregate budget deficit of Indian states is estimated to increase to 3.2 percent of gross domestic product in the next financial year beginning April, compared with 2.8 percent estimated for the current year, Devendra Pant, chief economist of India Ratings and Research, said.
“The competitive populism, in the nature of farm loan waivers and other financial support schemes, is hitting the capital spending and state finances,” he said.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.