(Bloomberg) -- Indian Finance Minister Nirmala Sitharaman said on Monday that the country’s fiscal deficit will be brought down to or below 4.5% of gross domestic product by the next financial year, which ends in March 2026.
“I am confident and hopeful” that the deficit will be lowered in line with what was announced in the budget in July, Sitharaman said in an interview with CNBC TV18. The government plans to cut its budget deficit to 5.1% of GDP this financial year.
Sitharaman also warned retail investors about speculating in the stock markets. The authorities must ensure that people don’t end up investing in “highly fluctuating or high risk ventures,” she said.
“There is no harm in participating in futures and options, or no harm in going on investing in the equities markets, but eventually we need to be using authentic financial information before we take a call,” Sitharaman said.
The finance minister had previously warned against heavy investments by retail investments in the F&O segment of the markets.
Sitharaman reserved her judgment on allegations of impropriety against the chair of India’s market regulator Madhabi Puri Buch.
“Quite a few of the allegations are answered by her and by her husband, and they are putting out facts to contradict those alleged by the Congress party,” Sitharaman said, referring to India’s main political opposition. “Facts have to be taken on board.”
She also said it’s the duty of the government to safeguard small traders and retailers from predatory pricing of e-commerce firms.
©2024 Bloomberg L.P.
