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6 months ago
BRIEF-Fitch says Indian budget sustains slow consolidation; signals reform
February 3, 2017 / 11:37 AM / 6 months ago

BRIEF-Fitch says Indian budget sustains slow consolidation; signals reform

Feb 3 (Reuters) - Fitch

* Fitch: Indian budget sustains slow consolidation; signals reform

* Fitch on Indian budget - Fitch views most of government's assumptions for FY18 (April 2016-march 2017) budget as achievable

* Fitch on Indian budget - divestment target, which has been consistently missed in recent years, looks optimistic again

* Fitch on Indian budget - Decision to raise deficit target for FY18 to 3.2 percent of GDP, from 3.0 percent, means slower near-term consolidation than planned

* Fitch on Indian budget - Government appears to be most focused on bringing more of India's "large informal economy" into formal sector and widening tax base

* Fitch on Indian budget - Government signalled it is looking at measures to attract more FDI and simplify labour laws

* Fitch on Indian budget - Government did not announce any concrete significant new reforms to improve business environment

* Fitch on Indian budget - "We view a significant increase in tax compliance only as an upside risk to revenue forecasts in next few years"

* Fitch on Indian budget - Fact that income tax still does not apply to agricultural sector will limit potential effectiveness of measures to raise income tax Source text for Eikon:

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