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New Delhi is scrambling to ease its fiscal deficit before announcing a new budget on March 16. Faced with disappointing tax collections and a burgeoning subsidy bill, the government had hoped to raise funds by selling stakes in state-run companies, which still dominate large areas of India's economy. India has raised about 140 billion rupees ($2.8 billion) from such asset sales this year, including Thursday's auction, against an initial target of 400 billion rupees ($8 billion), Thunuguntla said. Economists are wary of India's growing fiscal deficit, which analysts expect to miss the target of 4.6 percent of gross domestic product by a percentage point or more. Some have chided New Delhi for turning to one-off measures like asset sales to plug the gap rather than undertaking more difficult, fundamental reforms to boost revenues and trim spending. "Sustainable fiscal consolidation should not be based on non-tax revenue," Standard Chartered economist Samiran Chakraborty wrote in a recent research note. ONGC shares were down 2 percent, to 282 rupees, in midday trade Friday on the Bombay Stock Exchange.
[Associated
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