3.9% fiscal deficit negative for the markets
28 Feb 2015
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Ananth Narayan, regional head, global markets South Asia, Standard Chartered: Markets were expecting a fiscal deficit target of 3.6 per cent to be met in 2015-16, so the 3.9 per cent number will be negative for the markets as an initial reaction on Monday.
Also markets were not expecting the government to extend the fiscal consolidation roadmap by a year, and we were expecting fiscal deficit target of 3 per cent of GDP to be met in 2016-17. But we have to see how this additional money coming out of the higher fiscal deficit will be spent.
