FM surprises with cutback in fisc target; nominal GDP expected to grow 12%

Nominal GDP expected to grow 12% YoY

Breaking tradition, Finance Minister Nirmala Sitharaman wasn’t looking to explicitly spell out the fiscal deficit target for 2019-20. It is not even there in the text of the speech. She finished the speech, thanked the Speaker, and was about to sit down. Then, she just said “For those who are curious, the fiscal deficit target is 3.3 per cent (of GDP), from 3.4 per cent earlier.”

Markets, analysts, and the financial media was largely expecting the 2019-20 Union Budget to either retain the 3.4 per cent fiscal deficit target set in the interim Budget presented on February 1, or even go