The aggregate budget deficit of country's states is estimated to increase next financial yearNew Delhi:The cumulative fiscal deficit of states is expected to rise following announcement of farm support packages ahead of general elections due by May, India Ratings and Research, Indian arm of Fitch Ratings, said on Monday.The aggregate budget deficit of country's states is estimated to increase to 3.2 per cent of gross domestic product in next financial year beginning April, compared with 2.8 per cent estimated for current year, said Devendra Pant, chief economist of India Ratings and Research."The competitive populism, in nature of farm loan waivers and other financial support schemes, is hitting capital spending and state finances," he said.($1 = Rs 71.3690) Find latest news, updates and videos on Budget 2019, Budget expectations, tax and policy announcements here.
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