The federal government’s budget gap will be about 8% of gross domestic product in the year to March 2021, according to Citi India’s budget deficit is seen widening the most in more than three decades as weaker economic growth and stimulus to combat the impact of the coronavirus weighs on the government’s finances, Citigroup said in a report.
The federal government’s budget gap will be about 8% of gross domestic product in the year to March 2021, according to Citi.
That’s the widest since 1987, when the shortfall was 8.4%. “Downgrade by at least one of the rating agencies and change in outlook are now material risks for India to consider," analysts led by Citi’s Chief India Economist Samiran Chakraborty wrote.