Reuters reveals India likely to trim fiscal deficit target as Omicron cases rise

Reuters revealed that India is aiming for a fiscal deficit of 6.3% to 6.5% of gross domestic product for the next financial year, a less ambitious target than previously planned as COVID-19 infections threaten the economic recovery. Finance Minister Nirmala Sitharaman is due to unveil the 2022/2023 federal budget on Feb. 1. Officials said the thinking was that sharp cuts in government expenditure could hurt growth prospects. India’s case load of coronavirus infections is surging, fueled by the Omicron variant and the worry is that consumer and business spending will be hit, leaving the government with little choice but to step in.