Gold Silver Reports – Meeting next year’s fiscal deficit target hinges on enhanced revenue from a recovery in corporate profitability and rural consumption, according to Atsi Sheth, an analyst at Moody’s Investors Service. Kyran Curry, an analyst with Standard & Poor’s Ratings Services, said the government may have to cut capital spending to contain the deficit if growth, interest rates and food prices differ from budget assumptions.
The budget speech was geared mostly at rural areas with about 70 percent of the nation’s 1.3 billion people. Jaitley called for doubling farmer income in five years, expanded investments in irrigation, a revamped crop insurance program and an unprecedented amount of farmer credit. He also boosted spending on a rural jobs program and proposed a new health insurance scheme. – Neal Bhai Reports