India budget sees $7 bln revenue from telecoms sector in 2016

MUMBAI, Feb 28 (Reuters) - The Indian government expects revenue of 428.66 billion rupees ($6.95 billion) from the telecoms sector, including from auctions of its airwaves, during the next fiscal year to March 2016, the annual budget showed on Saturday.

The government has yet to give details on the spectrum auctions to be held during the next fiscal year. The estimates include revenue from the annual fees telecoms carriers pay to the government.

Bidding is set to begin next Wednesday for India's latest round of spectrum auctions, from which government expects to raise more than $13 billion. The government expects to raise $3.5 billion of that during the current fiscal year that ends in March.

Revenue from the sale of its telecoms airwaves is crucial for the government to meet its ambitious fiscal deficit targets. India's Finance Minister Arun Jaitley has targeted lowering the fiscal deficit to 3 percent of gross domestic product within 3 years, from 4.1 percent set for this fiscal year. ($1 = 61.6489 Indian rupees) (Reporting by Aman Shah, editing by Louise Heavens)