Page 29 - Latest Updates on Fiscal Deficit
Govt unlikely to press for hike in GST rates for non-essentials next month
However it will have to find ways in which essential and non-essential items can be segregated
 "Govt unlikely to press for hike in GST rates for non-essentials next month")
RBI issues cash management bills worth Rs 80,000 cr after good response
The RBI received bids of Rs 3.45 trillion, or more than four times the amount on offer.
 "RBI issues cash management bills worth Rs 80,000 cr after good response")
India's (im)possible road ahead
Better implementation of policy measures and reaching out to those left behind are needed next
States' fiscal deficit to rise to 4.5% of GSDP in FY21: Ind-Ra
The 20 states considered in the analysis constituted nearly 86 per cent of the budgeted aggregate revenue receipts for FY20.
 "States' fiscal deficit to rise to 4.5% of GSDP in FY21: Ind-Ra")
States' aggregate fiscal deficit to rise to 4.5% of GSDP in FY21: Ind-Ra
The agency's earlier forecast was 3%; it says state governments were already facing a lower-than-budgeted share in central taxes and subdued own revenue growth, when the 21-day lockdown was imposed
 "States' aggregate fiscal deficit to rise to 4.5% of GSDP in FY21: Ind-Ra")
Ratio of India's public debt to GDP likely to scale a new high in FY21
According to the Reserve Bank of India (RBI) data, the combined liabilities of the Centre and the state governments were around Rs 147 trillion at the end of March 2020
 "Ratio of India's public debt to GDP likely to scale a new high in FY21")
No restrictions on utilisation of additional borrowing by states: FinMin
It is to be noted that the basic limit of 3 per cent remains unconditional, while only additional one per cent out of the two is linked to citizen centric reforms, Finance ministry official said.
 "No restrictions on utilisation of additional borrowing by states: FinMin")
All options open to govt to monetise deficit under RBI guidance: N K Singh
He said all options should be open to the sovereign in consultation with the Reserve Bank of India (RBI)
 "All options open to govt to monetise deficit under RBI guidance: N K Singh")
Door open for stimulus 6.0; govt with industry: FM Nirmala Sitharaman
Calling her stint as FM during the pandemic "the most challenging assignment yet", Sitharaman said she was not upset with the criticism that the recent stimulus package was too little
 "Door open for stimulus 6.0; govt with industry: FM Nirmala Sitharaman")
I've to be careful, am answerable to Parliament: FM Nirmala Sitharaman
Nirmala Sitharaman tells Indivjal Dhasmana & Nivedita Mookerji that the government has made sure that mistakes committed during 2008-2013 are not repeated while announcing the Rs 20-trillion package.
 "I've to be careful, am answerable to Parliament: FM Nirmala Sitharaman")
Fiscal math of the imponderables
Growth holds the key to the government's fiscal deficit slippage
 "Fiscal math of the imponderables")
Borrowing limit raised, but states won't rush to make use of the chance
Only eight states will qualify for the extra borrowing, as they have to meet stiff conditions on ease of doing business.
 "Borrowing limit raised, but states won't rush to make use of the chance")
Post stimulus, fiscal deficit of Centre, states to be at 12% of GDP: Report
In the case of states, the fiscal gap will rise by 200 bps after the Centre hiked the borrowing limit of states to 5 per cent of GSDP on Sunday
 "Post stimulus, fiscal deficit of Centre, states to be at 12% of GDP: Report")
Higher borrowing can see FY21 combined fiscal deficit hit 12%: Economists
Net borrowing ceiling for 2020-21 was earlier pegged at Rs 6.41 trillion (3 per cent of gross state domestic product), and the states have thus far borrowed merely 14 per cent of this authorised limit
 "Higher borrowing can see FY21 combined fiscal deficit hit 12%: Economists")
Govt's fiscal cost could be less than 11% of total economic package
Not all of this amount will necessarily be borne in fiscal year 2020-21
 "Govt's fiscal cost could be less than 11% of total economic package")
Fiscal stimulus by FM is mostly credit oriented, says Subhash Chandra Garg
He said that the fiscal stimulus, by its very nature, is additional fiscal burden on the public finances
 "Fiscal stimulus by FM is mostly credit oriented, says Subhash Chandra Garg")
Expect a stimulus, even at the cost of high fiscal deficit: Venu Srinivasan
The government has given loans and ensured that companies, SMEs in particular, dont sink due to the crisis
 "Expect a stimulus, even at the cost of high fiscal deficit: Venu Srinivasan")
With Rs 20-trn package, fiscal deficit to balloon to 7.9% in FY21: Report
"We estimate a 4.5% direct impact on fiscal deficit purely because of revenue shortfall / automatic fiscal stabilizer and a 0.9% indirect effect because of GDP change," the SBI report says
 "With Rs 20-trn package, fiscal deficit to balloon to 7.9% in FY21: Report")
FM's Day 2 package: Govt's immediate fiscal cost will be close to Rs 10K cr
The direct spending by the centre, on Thursday's announcements will include Rs 3,500 crore that the centre will spend on providing free foodgrains to 80 million migrants
 "FM's Day 2 package: Govt's immediate fiscal cost will be close to Rs 10K cr")
Rupee drops by 19p to 1-wk low against dollar on fiscal deficit concerns
Domestic stocks advanced in early trade which supported the rupee. The key indices Sensex and Nifty, however, closed marginally down due to sell-off in financial counters
 "Rupee drops by 19p to 1-wk low against dollar on fiscal deficit concerns")
