The markets and the general public should rest assured that price stability will be maintained over the medium term. As regards fiscal policy, the latest budgetary notifications provide a mixed picture of public finance developments. The euro area deficit is expected to increase slightly.
14. The MUDRA is a case in point. While such a massive push would have lifted many beneficiaries out of poverty, there has been some concern at the growing level of nonperforming assets among these borrowers. Banks need to focus on repayment capacity at the appraisal stage and monitor the loans through their life cycle much more closely. 15.