The key point of interest in the upcoming budget will be whether the finance ministry implements the large public sector pay rise that the 7th Pay Commission recommended. We think it will and, with no obvious ways to either trim other forms of spending or significantly boost revenues, that it will also be left with little option but to announce wider fiscal deficit targets for the coming years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services