Fiscal Policy

Reserve Bank Governor Shaktikanta Das on Tuesday said the fiscal-monetary coordination was at its best during the last six years even as he thanked Prime Minister Narendra Modi for giving the opportunity to head the monetary authority of the country. Das, in a series of posts on X, on his last day of his six-year term as RBI Governor, also thanked the Finance Minister, various stakeholders and his colleagues at the central bank. "Immensely grateful to the Hon'ble PM @narendramodi for giving me this opportunity to serve the country as Governor RBI and for his guidance and encouragement. Benefited a lot from his ideas and thoughts," he said in a post on X from his personal handle. Expressing gratitude to Finance Minister Nirmala Sitharaman for her constant support and backing, he said, fiscal-monetary coordination was at its best and helped to deal with multiple challenges during the last six years. He also thanked all the stakeholders in the financial sector and in the economy; expe

India's swelling urban middle class has been the engine of its growth for far longer than government capex has

These state-specific fiscal vulnerabilities need appropriate policy considerations to enable sustainable fiscal recovery and innovative ways to augment the revenue space

Gourinchas told a news conference on the IMF's latest forecasts that China's fiscal stimulus measures so far lacked detail and therefore were not included in the IMF's China growth outlook

Kerala will host a conclave of five opposition-ruled states--four from South India and Punjab from the North--to discuss how to ensure their fiscal needs are addressed in the upcoming 16th Finance Commission, state Finance Minister K N Balagopal said on Thursday. Besides the Left-ruled Kerala and AAP-governed Punjab, the states that will take part in the conclave are Tamil Nadu (DMK) and the Congress-ruled states of Karnataka and Telangana. The move by the Left government is seen as an effort to bring together the opposition-ruled states to strengthen their bargaining position with the BJP-ruled Centre. Last year, the state had filed a suit in the Supreme Court against the Centre for imposing limits on its borrowing capacity. Balagopal said that the conclave, which will be inaugurated by Kerala Chief Minister Pinarayi Vijayan on September 12, aims to 'protect and strengthen' the cooperative and fiscal federalism of the country. Besides himself, Telangana Deputy Chief Minister and .

India's post-pandemic fiscal architecture should be anchored in debt and be holistic (encompassing Centre and states), dynamic (responsive to changing macro conditions), and conservative

India needs a sustainable and clear framework

Total government expenditure during the period was Rs 9.7 trillion, or about 20.4 per cent of the annual goal, lower than the Rs 10.51 trillion in the same period last year

India needs a fiscal road map consistent with the objectives of faster debt reduction

Asian Development Bank keeps FY25 growth projection unchanged at 7%

The ratio of short-term debt to foreign exchange reserves declined to 19.0 per cent at end-March 2024 from 22.2 per cent at end-March 2023

Empowering ward members (WMs) within village councils, who currently lack financial resources and act merely as rubber stamps, is another recommendation

Fiscal position should be improved with sustained growth

Consumption-based borrowing by the household sector makes investment capital even more expensive

With states expected to push the reforms agenda, a mechanism is needed for assessing their budget data

Fiscal mismanagement by states is an issue the union government has to be concerned about as it impacts the nation's economy, the Supreme Court observed on Wednesday and advised the Centre and the Kerala government to iron out their differences a cap on net borrowing by the southern state. The apex court made the observation while it was hearing a suit filed by the Kerala government accusing the Union of India of interfering in the exercise of its "exclusive, autonomous and plenary powers" to regulate the state's finances by imposing a ceiling on borrowing. The dialogue between the Centre and the state must not stop merely because of the pending suit, the court said while stressing on the need to resolve the issue. "Let all the senior officials who are capable to take decision and who are already involved in decision making sit together and resolve this," a bench of Justices Surya Kant and K V Viswanathan said. The Kerala government had told the top court on February 19 that a ...

Foreign flows will demand strong fiscal management

Within hours of Prime Minister Narendra Modi praising his predecessor Manmohan Singh in the Rajya Sabha, the White Paper criticised almost all aspects of the UPA rule under Singh

Commending Finance Minister Nirmala Sitharaman for her consistency and focus on growth in her interim Budget, a US-based India-centric business advocacy group has said that it represents a welcome statement of responsible fiscal management in an election year. The US-India Strategic and Partnership Forum (USISPF) also commend the government's continued focus on the trinity of infrastructure, inclusive growth, and fiscal prudence in line with growing US-India commercial ties. The interim Budget was presented on February 1 by Sitharaman. As an interim, pre-election budget with no major policy pronouncements, it represents a welcome statement of responsible fiscal management in an election year, the USISPF said in a statement. General elections are expected to be held in India between April and May. According to budget projections, the fiscal deficit for the upcoming financial year (2025) will narrow to 5.1 per cent and GDP growth will remain between 6-7 per cent GDP. On the expendi

In the current year, the gross market borrowings are estimated at Rs 15.4 trillion, and the net borrowing at Rs 11.8 trillion - the highest-ever government borrowing programme