ADB Cuts India GDP Growth Forecast for FY20, Govt Expected to Miss Fiscal Deficit Target for FY20

Govt likely to miss fiscal deficit target for FY20. ADB Cuts India GDP Growth Forecast for FY20.

 

HARD TIMES

Govt likely to miss fiscal deficit target for FY20.

Close Miss: Government is likely to miss its budgeted fiscal deficit target of 3.3% for FY20. The actual could be anywhere between 3.5% and 3.8% of the GDP.

 

The Fiscal Responsibility and Budget Management (FRBM) Act, after its amendment in 2018, allows a fiscal deficit slippage of not more than 0.5% for any given year, provided there are justifications, which may include a war, national security, severe collapse in the agriculture sector, a major natural calamity, big structural economic reforms, or the decline in real output growth of a quarter by at least 3 percentage points below its average of the previous four quarters. BS

ADB cuts India's GDP growth forecast for FY20.

A Gloomy Forecast: The Asian Development Bank (ADB) has slashed India's GDP growth forecast for FY20 to 5.1% due to slump in consumption affected by slow job growth and rural distress aggravated by poor harvest.

 

In September, ADB had forecasted India's GDP to grow 6.5% in 2019-20 and 7.2% in the year thereafter. Livemint

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