NEW DELHI – India's fiscal deficit could reach 5.5-5.6 percent of GDP in the current fiscal year that ends in March, forcing the government to borrow up to 400 billion rupees ($7.2 billion) extra from the market, a senior government official told Reuters Thursday. Just last month, subdued tax revenue and higher spending on subsidies forced the government to revise its fiscal deficit target to 5.3 percent for the current financial year from a previous target of 5.1 percent. However, a dismal response to last week's auction of mobile phone airwaves, has cast doubts on that target. India, which had budgeted for 400 billion rupees revenue from the auction of mobile phone airwaves, managed to raise about 94 billion rupees from an auction this month. The government plans to conduct a second auction in this financial year for the unsold airwaves. – Reuters
