As it prepares the 2020-21 (FY21) Union Budget, the government may assume a growth rate of 6-6.5 per cent in real gross domestic product (GDP) for the next fiscal year.
It is also likely to assume a deflator of around 4 per cent. That could take the nominal GDP outlook for FY21 to around 10 per cent.
It is this nominal GDP forecast on the basis of which the finance ministry is calculating key Budget targets like the fiscal deficit as a percentage of GDP and tax revenue growth for the coming year.
The upcoming Budget is crucial for Prime Minister Narendra Modi and Union Financ.....