Range of fiscal deficit set to ease in Budget

The increased spends which it may entail will have repercussions on fiscal deficit and the government may go for relaxed targets in the upcoming budget, Icra’s MD and Chief Executive Naresh Takkar said recently.

The Centre will realign its priorities and with a desire to see early results, start spending as well, he said. Takkar was quick to warn of the difficulties on the fiscal math as a result of such extra focus. 

The private sector capex is unlikely to come for the next six quarters, he said. “There is going to be a pressure. They may start looking at fiscal (deficit) not as a hard-coded number but have some kind of a band within which they would like to operate rather than sticking to a headline number,” he said.