India likely to trim fiscal deficit target as Omicron cases rises: Report

Finance Minister Nirmala Sitharaman is due to unveil the 2022/2023 federal budget on February 1 and officials said the thinking was that sharp cuts in government expenditure could hurt growth prospects.

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, three government officials said.

Finance Minister Nirmala Sitharaman is due to unveil the 2022/2023 federal budget on Feb. 1 and officials said the thinking was that sharp cuts in government expenditure could hurt growth prospects.