Rise in fiscal deficit likely to impact construction sector this yr: Report

Even as construction activities in the country have resumed since July, increase in fiscal deficit of central and state governments is likely to impact the sector this financial year, according to India Ratings (IndRa).

The agency had recently noted that the fiscal deficit of central and state governments will come at 12.1 per cent with the states contributing 4.5 per cent of it.

"An increase in central and state government fiscal deficit in FY21 can impact both order inflow and collection in the sector," India Ratings said in a release.

After almost three months of the Covid-19 pandemic-induced lockdown, the country entered the