The government is likely to overshoot its 2013-14 fiscal deficit estimate by 0.2-0.3 per cent to 4.8- 4.9 per cent as tax revenues have not been up to expectations, DBS said on Friday.
"The (Indian) government had estimated that last year's fiscal deficit was contained at 4.6 per cent, lower than the 4.8 per cent goal. However, the trends between April 2013 and February 2014 belie that optimism," the Singaporean brokerage firm said in a note.
"The final deficit could be adjusted higher when the numbers are available in late May," it said.
DBS said that during the first 11 months of 2013-14 ended March 31, only 76 per cent of the tax revenue collection target could be achieved, while on the expenditure front, the same number stood at 88 per cent.
The final fiscal deficit figure would move up to 4.8-4.9 per cent, it said.
Since 2012-13, Finance Minister P Chidambaram has been forced to take the fiscal consolidation target very seriously, driven majorly by global agencies' threats of a downgrade.
Published 02 May 2014, 17:55 IST