Page 22 - Latest Updates on Fiscal Deficit
Best of BS Opinion: A steep fiscal correction, a strategy for GST, and more
Here's a selection of Business Standard opinion pieces for the day
 "Best of BS Opinion: A steep fiscal correction, a strategy for GST, and more")
A steep fiscal correction
With modest revenue effort, the burden of cutting the deficit will fall on a big expenditure contraction
 "A steep fiscal correction")
Govt taking steps to carefully monitor fiscal deficit: FM Sitharaman
Finance Minister Nirmala Sitharaman on Monday said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 per cent of the GDP for the current financial year.
 "Govt taking steps to carefully monitor fiscal deficit: FM Sitharaman")
FM's 'Mool Mantra': Can't dodge fiscal deficit, has to be carefully tackled
Sitharaman asserts while govt can give stimulus, long-term infra financing is job of DFIs. Private players in this space will make funding competitive
 "FM's 'Mool Mantra': Can't dodge fiscal deficit, has to be carefully tackled")
Confident of reducing fiscal deficit to 4.5% of GDP by FY26: Exp secy
The government is confident of lowering the fiscal deficit to 4.5% of GDP by 2025-26 fiscal, considering a nominal GDP growth of 10 per cent every year, Expenditure Secretary T V Somanathan said
 "Confident of reducing fiscal deficit to 4.5% of GDP by FY26: Exp secy")
Higher deficit shouldn't put pressure on India's sovereign rating: DEA Secy
India's sovereign rating should not come under pressure due to surge in fiscal deficit which was mainly on account of higher expenditure to deal with the C-19 pandemic, said Economic Affairs Secretary
 "Higher deficit shouldn't put pressure on India's sovereign rating: DEA Secy")
Handle debt with care
Overall fiscal position can increase risks
Slower consolidation to constrain fiscal strength over medium term: Moody's
Rating agency Moody's on Wednesday India's fiscal deficit projections are higher than expected
 "Slower consolidation to constrain fiscal strength over medium term: Moody's")
Fiscal deficit may invite rating agencies' ire, Fitch may downgrade: Report
Global rating agencies may view the fiscally expansive budget proposals negatively, a brokerage said
 "Fiscal deficit may invite rating agencies' ire, Fitch may downgrade: Report")
With off-budget borrowings, FY22 fiscal deficit rises to 6.9%: Report
The fiscal deficit target will go up by 10 basis points to 6.9 per cent of the GDP if the extra-budgetary borrowings of Rs 30,000 crore is added, according to a report
India's fiscal targets higher; consolidation slower than expected: Fitch
The wider deficits and more gradual pace of consolidation will lift India's government debt
 "India's fiscal targets higher; consolidation slower than expected: Fitch")
Wider fiscal deficit, consolidation could pressure India's ratings: Fitch
Fitch had placed India's "BBB-" rating on a negative outlook in June 2020 due to the pandemic's impact on growth prospects and the challenges of the high debt burden
Morgan Stanley ups Sensex target to 55,000; bullish on cyclicals, midcaps
We believe the overall approach of the fiscal policy is in line with the message from the Economic Survey, said Morgan Stanley in a post Budget note
 "Morgan Stanley ups Sensex target to 55,000; bullish on cyclicals, midcaps")
Proper monetisation of assets can wipe off Budget deficits
Refreshingly, both in healthcare and infrastructure, the FM has talked about a plan that stretches well beyond a year. Along with education, these form the foundation for an inclusive society
Budget: Govt pegs FY21 fiscal deficit at 9.5%; sets target at 6.8% for FY22
In FY21, the gap between revenue and expenditure reached Rs 18.48 trillion in the revised estimate. For FY22, the gap is expected to be Rs 15 trillion
 "Budget: Govt pegs FY21 fiscal deficit at 9.5%; sets target at 6.8% for FY22")
It's getting better over time: FM cuts Budget speech short this year
There has been less fudging with the revised estimates (RE) of 2020-21.
Capital outlay should support a higher pace of GDP expansion in FY22
The fiscal deficit of the government of India has increased sharply to 9.5 per cent of GDP in the Revised Estimates for FY21, relative to the budgeted target of 3.5 per cent
 "Capital outlay should support a higher pace of GDP expansion in FY22")
Budget is a bold gambit with focus on growth without any increase in taxes
With the economy likely to grow at a nominal growth of between 15-16 per cent, the tax revenue increase of 16.7 per cent appears fairly achievable
 "Budget is a bold gambit with focus on growth without any increase in taxes")
Budget 2021 can be a turning point in India's socialist orientation
The government focuses on developing infrastructure, dares to gamble on deficit.
 "Budget 2021 can be a turning point in India's socialist orientation")
Budget 2021: Govt's bank privatisation plan, bond market reaction, and more
In this podcast, we discussed the key announcements made by the finance minister about bank privatisation, asset reconstruction company and how bond market seeing the budget, why yields are rising
 "Budget 2021: Govt's bank privatisation plan, bond market reaction, and more")
