With scarcity of rainfall and slowdown in exports, the Government on Friday scaled down its economic growth projection for 2015-16 to 7-7.5 per cent from 8.1-8.5 per cent. However, the Government assured that Budget deficit target would be met as higher tax revenues offset a shortfall in PSU stake sale.
“Given the challenges, we estimate that real Gross Domestic Product for the year as a whole will lie in the 7-7.5 per cent range,” said the Mid-Year Economic Analysis, which was tabled in Parliament on Friday, adding that retail inflation is likely to be within the central bank’s target of about 6 per cent