January Rate Cut Subdues Expectations Of RBI
Latest data by the Controller General of Accounts shows that deficit during April-December period was over 
532,000 crore as against the annual budget estimate of 531,000 crore.
The NDA government's first full budget, that will critically guide growth and the allocation of liquidity in the next fiscal, will be presented to parliament on Feb 28.
Another factor for Governor Raghuram Rajan is that data on the day of his January rate cut showed the December trade deficit had fallen to a five-month low on account of plunging crude oil prices, which dropped to around $45 a barrel.
Rajan may be tempted to look to the government to stimulate growth in the face of sentiments being voiced by industry.
Painting a dismal picture of the economy during the last six months of 2014, India Inc. Sunday said not much had changed on the ground at the industry level during the period falling within the Narendra Modi-led government's tenure.
The chamber's respondents were, however, optimistic that things will improve a lot in the next as many months, the Associated Chambers of Commerce of India said in a statement here.
Read Also:
