Govt likely to stick to fiscal deficit target of 3.2%, says Surjit Bhalla

Economic growth slipped to its lowest level in three years in the first quarter, logging an annual rate of 5.7%

The government is likely to stick to its fiscal deficit target of 3.2 per cent of the gross domestic product, and might accelerate sales of government stakes in lenders and other companies as part of an effort to recapitalise banks, an advisor to Prime Minister Narendra Modi said on Tuesday.

The Modi government has already used up nearly all of its Budget for the current fiscal year and tax revenues are expected to fall far short of initial expectations.

At the same time economic growth has slowed, sparking calls for more stimulus.

Surjit Bhalla, a member of Modi's Economic Advisory Council, told Reuters