Government Spending

Industry body CII has suggested the government to stick to the fiscal deficit target of 4.9 per cent of GDP for 2024-25 and 4.5 per cent for 2025-26, cautioning that "overly aggressive targets" beyond these could adversely affect India's economic growth. "India has been growing rapidly amidst a slowing global economy. Prudent fiscal management for macroeconomic stability has been pivotal to this growth," said Chandrajit Banerjee, Director General, CII, elaborating on suggestions for the forthcoming Union Budget. CII also highlighted the announcement in the Union Budget 2024-25 to keep the fiscal deficit at levels that help reduce the debt-to-GDP ratio. In preparation for this, the forthcoming budget could lay out a glide path to bring the central government's debt to below 50 per cent of GDP in the medium term (by 2030-31), and below 40 per cent of GDP in the long term, CII has suggested. Such an explicit target will have a positive impact on India's sovereign credit rating and ...

Rating agency ICRA on Monday said it expects sequential revenue growth for India Inc in the December quarter, led by improved rural demand and uptick in government spending, additionally supported by the festival season. However, headwinds such as uneven urban demand and evolving global uncertainties could weigh on growth in the second half of the fiscal, it said. On balance, ICRA said it expects the operating profit margin (OPM) for India Inc to improve in the coming quarters. As a result, the credit metrics of India Inc in the October-December period of FY25 are estimated to improve with the interest coverage ratio in the range of 4.5-5 times, against 4.1 times in Q2 FY25, the agency said. Commenting on the trends, Kinjal Shah, Senior Vice President and Co-Group Head -- Corporate Ratings, ICRA -- said while corporate India witnessed a muted sequential revenue growth in Q2 FY2025, led by the ongoing slowdown in urban demand, lower government spending amid monsoon-related disruptio

The Indian economy could grow between 7-7.2 per cent in the current fiscal on strong government spending, and higher manufacturing investments, but a tempered global growth will impact the outlook for the next fiscal, Deloitte India said on Tuesday. In its 'India Economy Outlook for October 2024', Deloitte said the thriving manufacturing sector, stable oil prices, and potential US monetary easing post-elections may boost India's capital inflows, reduce production costs, and enhance long-term investments and job opportunities. The economy grew 6.7 per cent year-over-year in the April-to-June quarter of the current fiscal ending March 2025. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally. Deloitte India retains its annual GDP growth projection to be between 7 per cent and 7.2 per cent in FY 2024-2025 and between 6.5 per cent and 6.8 per cent the following year, it said in a statement. India's central bank RBI had

Despite strong growth relative to other economies, India is lagging on job creation and more inclusive economic growth

Annual government spending has shot up. Fiscal deficit concerns remain. Between the Centre and states, sometimes one has scored over the other. An overview of government finances since 1975

Union Budget 2024-25: The fiscal deficit is estimated at 4.9% of the GDP for the current financial year and the government aims to reduce it to below 4.5% next year

A modest expenditure plan could give an extra fillip to India's bond market, where benchmark yields are edging toward a 2-year low

The government on Monday sought Lok Sabha's approval for a net additional spending of Rs 78,673 crore in the current financial year. The second batch of supplementary demands for grants for 2023-24 fiscal was tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman. The supplementary demands for grants includes a gross additional spending of over Rs 2 lakh crore, which would be matched by savings of over Rs 1.21 lakh crore. The proposal involves net cash outgo aggregating to Rs 78,672.92 crore, said the document tabled in the Lok Sabha.

It's important to see the quality of spending and missing gaps in resource provision

The Rs 540 crore fund is the first instalment of the Pradhan Mantri Awas Yojana - Gramin, focused on the socio-economic development of particularly vulnerable tribal groups

This move will give the private sector scope to pick up the slack in the coming years

New Zealand's economy is expected to remain sluggish for another two years, although the overall picture is rosier than many observers had feared, new figures released Tuesday indicate. The nation's Treasury released the projections ahead of an election next month. They showed a slight deterioration from earlier predictions, with tax takes lower than expected and high inflation causing ongoing headaches. Unemployment is expected to jump from a current rate of 3.6 per cent to 5.4 per cent in 2025 before falling again, while economic growth is expected to fall from 3.1 per cent this year to 1.3 per cent next year, before bouncing back to 3.3 per cent by 2026. Net debt as a percentage of the economy is expected to peak at 23 per cent in 2025. Treasury said subdued house price growth and a tougher labour market would dampen household wealth and incomes, and that exporters, including farmers, faced ongoing headwinds. A predicted return to the government running budget surpluses was pushe

The projected spending is $11.6 billion in 2023, the report said

Fertiliser, food subsidies, payments to OMCs for LPG dominated supplementary demand

Mainly a PPP and B2B player, the Pune-based chain offers disruptive pricing

If the finance ministry wants private investment to revive, it must make things easy for it and resist the temptation to go on spending just because it can

The previous five years saw the states' share, except for 2019-20, in between 34.5% and 37%, whereas the recommendation was to give them a 42% share

CAG audits show that more than lack of funds, it's the shortage of administrative capacity that leads to underspending on health and education

Some of the big items include Rs 14,902 crore for fertiliser subsidy and Rs 30,170 crore for credit-linked subsidy scheme houses for economically weaker sections

The updated Public Financial Management System will complete one year in operation on March 31, but challenges to full integration remain