pandemic has slowed tax revenue and put resources under pressure after the administration pledged measures to support the economy, which is seen contracting for the first time in more than four decades this year.That’s led to calls for getting the Reserve Bank of India to directly fund the fiscal deficit.
But there’s no plan on the table to directly sell sovereign bonds to the central bank, nor has a discussion taken place with them on that topic, Bajaj said.“The kind of contraction some of the people are mentioning may also not turn out," he said, without giving any forecast.
The International Monetary Fund estimates the nation’s GDP to shrink 4.5% this year, while Goldman Sachs Group Inc. is forecasting a 5% decline.