According to the Japanese financial services major, the government is likely to meet its
The increase in the wages and pensions burden owing to the Seventh Pay Commission and the One Rank One Pension scheme will be the main reasons for the slippage, it said.
Finance Minister
In the Budget for 2015-16, Jaitley had stretched the fiscal deficit target to 3.9 per cent from the earlier 3.6 per cent to address growth concerns. As per the roadmap, deficit is to be brought down to 3.5 per cent of GDP in 2016-17, from 3.9 per cent in 2015-16.
International rating agencies have threatened to downgrade the country's sovereign rating if the government neglects fiscal math.
"Overall, we think the budget will be a tightrope walk. We do not expect a 'gamechanger', but rather a 'run-of-the-mill' budget," the research note added.
On Reserve Bank's monetary policy stance, Nomura said that despite the fiscal slippage, the apex bank is expected to deliver a 25 bps repo rate cut at its April policy meeting.
Meanwhile, RBI governor Raghuram Rajan on February 2 left the key
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