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Sunday, 11 March 2018

Finance Ministry updates projection for budget deficit this year to 9.6-9.8% of GDP

The government is expecting the budget deficit for the current fiscal year to reach 9.5-9.7% of GDP, down from 10.9% in FY2016-17, according to a statement from Ittihadiya. It expects this to drop again to 8.5% of GDP in FY2018-19. The Finance Ministry had announced on Thursday that the budget deficit for FY2017-18 will reach 9.6-9.8% of GDP, in a statement picked up by Reuters. The ministry had updated its projections in late January to 9.4% from an initial rate of 9% to account for the increase in global oil prices. For the next fiscal year, the ministry said it was targeting a budget deficit of 8.5-8.8%, a primary surplus of 1.8-2%, and GDP growth rate of 5.5%. The draft budget for FY2018-19 will be presented to the House of Representatives on 31 March.

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