Sources: India plans to cut spending to curb deficit – Reuters
|Citing three Indian government sources early Tuesday, Reuters reported that the Indian government is likely to cut spending for the current fiscal year by as much as 2 trillion Indian rupees as it faces one of the biggest deficits in the recent years.
A 2 trillion-rupee reduction would be about a 7% cut in total spending planned for the year.
One of the official said: “But with a revenue shortfall of about 2.5 trillion rupees, the government has little choice to keep its deficit within acceptable limits”.
Lack of demand and weak corporate earnings growth in the economy led to lagging tax collections this year. Analysts said growth will be hurt, per Reuters.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.