NEW DELHI: A key point which will be tracked in the Budget is the government’s fiscal deficit numbers, said S Raman, chairman, Canara Bank.
“There were some initial signs in the railway budget that the fiscal problem would be at rest or at least that there would be a strong attempt to address it. In that context, what the finance minister does to address the fiscal deficit issue will be very important and that will decide many things,” Raman said.
He said the fiscal deficit will impact key macro-economic variables like RBI’s interest rate policy.
“If it is a good budget, it will start a whole host of things, encouraging the RBI to take the next step downward in the April pronouncement. Once a few things happen, then of course the entire matter is that of capital investment, which has been very poor during the last one year, which has resulted in the lower credit growth,” he added.
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