India stares at Rs 40,000 crore GST shortfall in FY19

We grow more confident of our call that the Centre will see fiscal slippage of 30bp of GDP. We see three risks of fiscal overrun: GST collection‎ slippage (0.2% of GDP); lower-than-expected divestment proceeds (Rs92bn FYTD vs Rs800bn BE) and step up in pre-poll public spend. To a degree, this will be funded by cutting capital expenditure and utilizing the government surplus with the RBI swings on…