The tepid response to the government’s ambitious spectrum auction is likely to leave a big hole in the government’s fiscal balances. “There will be a shortfall of Rs 30,000 crore due to the tepid response in the spectrum auction. “The fiscal math is running neck-to-neck between mounting pressures (shortfalls in disinvestments and spectrum sales receipts) and offsetting factors (higher than expected excise collections and income disclosure scheme). Last year, the disinvestment target was cut by 63% to Rs 25,300 crore from budgeted Rs 69,500 crore. HSBC believes, the government could yet meet its fiscal targets, but investment spending could suffer.

Source: Hindustan Times October 07, 2016 11:15 UTC