Page 4 - Latest Updates on Fiscal Deficit
India's FY24 fiscal deficit lower than full-year target, shows govt data
The fiscal deficit came in at Rs 16.54 trillion ($198.34 billion), or 95.3% of the estimate, even as the government continued its record infrastructure spending to boost the economy
 "India's FY24 fiscal deficit lower than full-year target, shows govt data")
Record RBI dividend at 0.6% of GDP may not be sustained, says Fitch
Fitch said an important driver of higher RBI profits appears to be higher interest revenue on foreign assets, though the central bank has not yet provided a detailed breakdown
 "Record RBI dividend at 0.6% of GDP may not be sustained, says Fitch")
RBI dividend usage to signal new govt's fiscal priorities: Ratings agencies
The general elections are currently underway and a new government would be formed sometime next month. A full budget for 2024-25 fiscal would be tabled in July
 "RBI dividend usage to signal new govt's fiscal priorities: Ratings agencies")
India's new govt will be spoilt for choice with $25 bn extra in kitty
On Wednesday, the RBI announced a record Rs 2.11 trillion dividend transfer to the government
 "India's new govt will be spoilt for choice with $25 bn extra in kitty")
Fiscal bonanza
RBI transfer should be used for fiscal consolidation
 "Fiscal bonanza")
RBI's surplus transfer sparks hope for reduced govt borrowing by Rs 1 trn
Bond market participants are now focusing on the monetary policy meeting in June to assess the central bank's liquidity stance
 "RBI's surplus transfer sparks hope for reduced govt borrowing by Rs 1 trn")
India to get rating support if it uses RBI dividend to reduce deficit: S&P
The interim budget presented in Parliament earlier in the year targets a fiscal deficit of 5.1 per cent of the GDP
Will stock market crash if BJP gets less than 270 seats in Lok Sabha polls?
In the worst case scenario where the NDA is unable to secure a majority (seats less than 272), analysts at Bernstein expect 'heavy profit booking' in the markets with low or negligible returns
 "Will stock market crash if BJP gets less than 270 seats in Lok Sabha polls?")
Bumper RBI dividend of Rs 2.11 trillion to give govt more fiscal room
Economists said that the government may not need much borrowing because of the highest-ever transfer of surplus to the government
India's fiscal deficit for FY24 likely to be better than expected
Govt capex for the last financial year also in line with projections, say sources
 "India's fiscal deficit for FY24 likely to be better than expected")
FY24 fiscal deficit seen slightly better than projected Rs 17.4 trn: Report
India's income tax receipts rose 17.7% year-on-year to nearly $235 billion in 2023/24, higher than government's projection
 "FY24 fiscal deficit seen slightly better than projected Rs 17.4 trn: Report")
India's oil import bill could swell to $101-104 billion in FY25: ICRA
A $10 per barrel uptick in average crude oil price for this fiscal pushes up the net oil imports by $12-13 billion during the year, according to ICRA
 "India's oil import bill could swell to $101-104 billion in FY25: ICRA")
States fiscal deficits for FY24 likely to be close to 3.1% of GDP: Citi
The report suggests grants from Centre to states have been falling due to no GST compensation funds and lower finance commission grants
 "States fiscal deficits for FY24 likely to be close to 3.1% of GDP: Citi")
Creating adequate fiscal space important to give impetus to growth: Kovind
Now there are fewer tax slabs, processes have been streamlined. taxation policy has become more predictable and investor confidence improved while ease of doing business has enhanced, he said
 "Creating adequate fiscal space important to give impetus to growth: Kovind")
Kerala paid Rs 26,000 cr in March to various sectors: State FM Balagopal
He said the state government effectively intervened to manage the financial crisis and an interim application on the borrowing limit and other matters are pending before the Supreme Court
 "Kerala paid Rs 26,000 cr in March to various sectors: State FM Balagopal")
India's Apr-Feb fiscal deficit at Rs 15.01 trn, hits 86.5% of FY24 target
The Centre's fiscal deficit is estimated at Rs 17.34 trillion for FY24
Fiscal deficit at Feb-end touches 86.5% of full-year target: Govt data
In the corresponding period last year, the fiscal deficit -- or gap between the expenditure and revenue -- was 82.8 per cent of Revised Estimates (RE) of the Union Budget 2022-23
 "Fiscal deficit at Feb-end touches 86.5% of full-year target: Govt data")
Inflationary pressure
Fiscal expansion increased inflation in the developed world
 "Inflationary pressure")
India's exports may reach $450 bn this fiscal: FIEO Prez Ashwani Kumar
He also said that despite issues, exports rose about 12 per cent in February to $41.40 billion. During April-February 2023-24, exports reached $395 billion
 "India's exports may reach $450 bn this fiscal: FIEO Prez Ashwani Kumar")
Significant ramp up in capacities to help achieve $40 bn exports target
Steps such as significant ramp up in production capacities, and skilling of workforce will help achieve $40 billion garment exports target by 2030
 "Significant ramp up in capacities to help achieve $40 bn exports target")
