India to Overlook Fiscal Deficit Worries in Virus Recovery Fight

(Bloomberg) -- India will not worry about missing its budget deficit target as it seeks to step up spending to support the economy, its Finance Minister Nirmala Sitharaman said.

The government will ensure that state-owned enterprises continue with capital expenditure, she said in an interview to Bloomberg TV.

“For the present, I’m not going to allow the fiscal deficit number to worry me because there is a need, and a clear need, for me to spend the money,” Sitharaman said.

India last month expanded stimulus measures to 15% of the economy to rescue companies and save jobs in an economy clobbered by a sudden lockdown in March to stem the coronavirus pandemic. That could widen the budget gap to 8% of gross domestic product in the year to March, more the double the budgeted 3.5%.

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