Fiscal Deficit

#1
FM made a statement on Oil Bonds now being part of the Fiscal Deficit, whereas last year they were not part of the Fiscal Deficit (this was part of the 2 paragraphs that he "missed" in a hurry to complete soon, and added later).

If Market is happy with 5.1% deficit, it will be extremely thrilled once this bit of news is factored in.

Remember, last year, the target for this year was 5.5% - He not only beat the target, but beat it AFTER adding Oil Bonds - which are about Rs 60,000 crores.

My back of envelope calc is that deficit would have dropped from 4.1 Lakh crore to 3.5 Lakh crore if this was not done. So the actual figure (to compare with the 5.5% targeted deficit) of the fiscal deficit would be just 4.2%!

Once this news gets factored in, markets will react quite strong.
 

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