Analysts rule out big-bang stimulus spend by govt despite RBI windfall

Analysts say lacklustre tax collections and weak growth which is threatening the fiscal deficit target of 3.3 per cent of GDP are some of the reasons that will limit the government's spending power

Analysts, for now, have ruled out the possibility of the government going overboard with stimulus measures to prop-up the slowing economy despite the windfall gain received from the Reserve Bank of India (RBI) in the form of transfer of record surplus of Rs 1.76 trillion. 

Lacklustre tax collections and weak growth which is threatening the existing fiscal deficit target of 3.3 per cent of gross domestic product (GDP), they say, are some of the reasons that will limit the government's spending power. 

Analysts at Nomura, for instance, expect a shortfall in tax revenues for the current financial year 2019-20 (FY20)