Market is looking at fiscal slippage this year, said ICICI Securities' A Prasanna.
The market has reconciled that there is going to be large slippage on GST collections from the budgeted number, A Prasanna, Chief Economist at ICICI Securities Primary Dealership (PD) told CNBC-TV18 in an interview.
"Our estimate is around Rs 1.4 trillion (Rs 1.4 lakh crore). It is likely that it could be higher also but this is something which the market has already factored in which means that they are looking at fiscal slippage this year," he added.
"However, the question is from the revenue side all the slippages are known so on the expenditure side what the government is able to do, how they are able to manage, how much higher than 3.3 it's going to go. Our sense is that they are going to cap it at 3.5 percent, at least optically to present fiscal deficit which is reasonable enough," he said.