While brokerages such as Ambit and Macquarie have reduced their gross domestic product (GDP) estimates, chief economic advisor Arvind Subramanian says it is too early to start revising GDP growth numbers downwards.
The revenue deficit, fiscal deficit and primary deficit which stood at Rs 576 crore, Rs 297 crore and Rs 609 crore, respectively, in 2012-13, increased to Rs 1,614 crore, Rs 4,011 crore and Rs 1,530 crore, respectively, in 2013-14, the CAG said in its report.
As the fiscal year, 2014-15, draws to a close today, the government has managed to contain its fiscal deficit at 4.1 percent of gross domestic product that it had outlined in the Budget last year and reiterated this year.
In their meeting with Fitch representatives, senior Finance Ministry officials highlighted various initiatives announced in the Budget 2015-16 which are expected to boost investment and growth. The officials highlighted the government's commitment to stick to targets set for the fiscal as well as the current account deficits.
"The meeting has been scheduled for March 22 where he would be addressing the board members and talk about announcements made in the Budget to perk up growth," a source said. It has been a custom that the Finance Minister addresses RBI board, consisting of RBI Governor and existing three deputy governors, after the Budget.
The Budget has received a mixed response from global rating agencies with the US-based S&P saying that the annual financial document seeks to keep the fiscal deficit in check despite subdued revenue growth.
Finance Minister Arun Jaitley on Saturday announced a budget that put boosting growth before painful reforms, slowing the pace of fiscal deficit cuts and seeking to put domestic and foreign capital to work.
Indian markets may correct in the near term as increasing attractiveness in Asian peers as well as the Budget event being out of the way may take a toll, according to Manishi Raychaudhuri of BNP Paribas.
Accordint to Angel Broking, Indian Rupee will trade sideways today as higher fiscal deficit target in the budget will exert pressure. However, optimism in Asian equities after rate cut from china will be supportive.
The government's debt burden and subsidy spending continue to constrain fiscal flexibility said Standard & Poor's, while praising the government's commitment to keeping the fiscal deficit low despite lower-than-expected revenue growth
The Budget impact on the currency will be muted though there could be some short-term disappointment from the fiscal deficit target being higher than market expectations, says Agam Gupta of Standard Chartered.