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moodys analytics, , LimeLight

Fiscal Slippage for Two Consecutive Years Leading to Negative Credit: Moody's

In the interim budget for 2019-20, the government proposed to increase spending to provide income support for small farmers and introduce a middle-class tax cut in the run up to the general election between April and May. In light of these budget measures, the government announced slippage from its original fiscal deficit targets to 3.4 per cent of GDP both for the fiscal years ending in March 2019 and March 2020.

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