Fitch Raises India's FY20 Fiscal Deficit Forecast to 3.6% of GDP, FM Nirmala Sitharaman Hints At Real Estate Reforms

Fitch raises India's fiscal deficit forecast to 3.6% of GDP. Finance Minister Nirmala Sitharaman says real estate incentives being discussed to boost the sector.

 

ECONOMY

Fitch raises India’s fiscal deficit forecast to 3.6% of GDP.

Fitch Perfect (Not Really): On Wednesday, Fitch Solutions raised India’s fiscal deficit forecast to 3.6% of GDP for this FY from 3.4% as weak economic growth take a toll on revenue collection, in addition to the government’s recent sweeping corporate tax rate cut.

 

The ratings agency said the revision reflected “our view for a larger slippage versus the government’s 3.3% target”. Fitch said weak growth and the rate cut “amid no intention to reduce fiscal spending” had precipitated this change in numbers. Hindu BusinessLine

 

Fitch Raises India's FY20 Fiscal Deficit Forecast to 3.6% of GDP, FM Nirmala Sitharaman Hints At Real Estate Reforms

 

Real estate sops being discussed, Nirmala Sitharaman hints.

Waiting on the World to Change: Saying real estate was one sector of the economy the government had not yet touched since August when it began making various interventions to revive the economy, Finance Minister Nirmala Sitharaman recently said the government is “very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector”.

 

Sitharaman said the real estate sector was particularly important for the economy since it has a spillover effect on other segments. A boost in the real estate sector – which has also been negatively affected by the ongoing slowdown – would help not only home-buyers but also several core industries. The Telegraph

 

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