Page 7 - Latest Updates on Fiscal Deficit
Interim Budget to reduce fiscal deficit, focus on capex, suggests poll
The government is aiming to narrow the fiscal deficit to 4.50 per cent of GDP by the end of the 2025-26 fiscal year (FY) from 5.90 per cent in the current year to end-March 2024
 "Interim Budget to reduce fiscal deficit, focus on capex, suggests poll")
Interim Budget 2024-25: Govt may target 5.3% fiscal deficit for FY25
Most economists see govt meeting FY24 target despite risks from weaker than budgeted nominal GDP growth and disinvestment shortfall
 "Interim Budget 2024-25: Govt may target 5.3% fiscal deficit for FY25")
Budget 2024 expectations: What stance will interim Budget 2024 adopt?
Nirmala Sitharaman's recent statement that the February 1 Budget would just be a vote on account could mean that she will uphold the convention surrounding an interim Budget
 "Budget 2024 expectations: What stance will interim Budget 2024 adopt?")
Fiscal deficit at 5.2-5.4% in interim Budget 2024-25: Goldman Sachs
While income taxes and corporate taxes are expected to grow at around 15 per cent in FY25, the government is likely to lower its target for disinvestment in the next fiscal year
 "Fiscal deficit at 5.2-5.4% in interim Budget 2024-25: Goldman Sachs")
Centre may peg FY25 fiscal deficit at 5.3% in interim budget: Goldman Sachs
Interim Budget 2024: The Centre will keep a focus on increasing the capital expenditure but it will most likely be at a slower pace than earlier, says Goldman Sachs
 "Centre may peg FY25 fiscal deficit at 5.3% in interim budget: Goldman Sachs")
Govt plans to raise capital spending as much as 20% in FY25: Report
The government is trying to raise capital spending on building infrastructure to as much as Rs 12 trillion ($144.59 billion) from the current year's plan of Rs 10 trillion
 "Govt plans to raise capital spending as much as 20% in FY25: Report")
Interim Budget 2024-25 likely to set nominal GDP growth at 10-10.5%
Govt may finalise FY25 Interim Budget assumption this week
 "Interim Budget 2024-25 likely to set nominal GDP growth at 10-10.5%")
Ind-Ra ups FY24 GDP growth estimate to 6.7%, warns of fiscal challenges
On inflation, the Ind-Ra report said it expects retail inflation to cool off to 5.1 per cent and 4.7 per cent, respectively, in the third and fourth quarter of this fiscal, respectively
 "Ind-Ra ups FY24 GDP growth estimate to 6.7%, warns of fiscal challenges")
Union Budget 2024: 10 terms to boost the know-how of key financial exercise
The Union Budget, laid out on February 1 annually, is the financial roadmap that shapes the country's economy. Here are 10 key Budget terms for better insights into the key financial exercise
 "Union Budget 2024: 10 terms to boost the know-how of key financial exercise")
States' indicative borrowing for fourth quarter higher than forecast
The government transferred the amount to states as tax devolution for financing various social welfare measures and infrastructure development schemes
 "States' indicative borrowing for fourth quarter higher than forecast")
Fiscal deficit contained at 50.7% of FY24 budget estimate in Apr-Nov
The Government, CGA data indicates, is moving towards fiscal consolidation, with improved tax collections compared to the April-October period and compressed capital expenditure
Fiscal deficit for Apr-Nov narrows to 50.7% at Rs 9.07 trillion: Govt
Earlier this month, finance minister for state Bhagwat Karad said that the Centre was confident of meeting the fiscal deficit target of 5.9% in FY24
 "Fiscal deficit for Apr-Nov narrows to 50.7% at Rs 9.07 trillion: Govt")
Centre expected to maintain fiscal discipline in Interim Budget 2024
Interim budget likely to prioritise fiscal consolidation over populist spending, anticipating fiscal deficit at 4.5% of GDP by FY26
 "Centre expected to maintain fiscal discipline in Interim Budget 2024")
High indebted Punjab, Himachal may breach BE of fiscal deficit in FY24
Punjab had over 40% debt as a proportion of GSDP in 2019-20 too, while Himachal Pradesh had 39.1%
HP fiscal deficit may rise to be 5.82 pc of SGDP due to higher liabilities
The government has assured to bring down the deficit by curtailing expenditure and resource mobilisation
Positive outlook
High public debt remains a risk
 "Positive outlook")
RBI to conduct VRR auction again as liquidity deficit widens to Rs 2.3 trn
The market speculated a total of around Rs 4 trillion worth of outflows because of advanced tax and GST payments in December
 "RBI to conduct VRR auction again as liquidity deficit widens to Rs 2.3 trn")
Gross fiscal deficit of Centre, states stays under 7% of GDP: RBI article
Lower disinvestment receipts are likely to be offset by sharp gains in non-tax revenues, mainly attributable to higher dividends from the Reserve Bank and other financial institutions
 "Gross fiscal deficit of Centre, states stays under 7% of GDP: RBI article")
Augmenting fiscal capabilities
Quality of expenditure should sway fiscal transfers
Centre says likely to achieve fiscal deficit target of 5.9% of GDP in FY24
India's fiscal deficit in the first seven months of the financial year ending on March 31, 2024 was 8.04 trillion Indian rupees ($96.86 billion), or 45% of the estimate for the whole year
 "Centre says likely to achieve fiscal deficit target of 5.9% of GDP in FY24")
