MUMBAI: The government will probably miss its fiscal deficit target of 3.5% of gross domestic product (GDP) in financial year 2021 owing to the covid-19 pandemic, Reserve Bank of India (RBI) governor Shaktikanta Das said in an interview to news agency Cogencis.
The transcript of this conversation was released by the central bank on Monday. “In terms of exceeding the fiscal deficit, two straight replies, one is the 3.5% fiscal deficit target for this year will be very challenging to meet.
As regards, how much it will exceed and how much the government will spend, that will depend on the view taken by the government, with regard to how much they can exceed the deficit number, and what kind of support measures can be taken that produce