Page 3 - Budget Estimates

Divergence in revenue estimates due to early Budget or lack of discipline?

Provisional actuals of the Budget for 2020-21 have once again varied sharply from the revised estimates. The variation provides fiscal cushion, but also raises several questions

Direct tax mop-up betters estimate for the first time in four years

With the payments of the last instalment on Monday, advance tax collection for FY21 was around 7 per cent higher than last year's

Road to recovery

Hopeful signs in data, but medium-term outlook uncertain

Fiscal deficit hits Rs 12.34 trillion at end of January, shows data

The fiscal deficit at the end of January in the previous financial year was 128.5 per cent of the Revised Estimates (RE)

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

Fiscal activism

Govt should tread carefully on this path

Fiscal deficit at 135% of BE on higher capex; spending in Nov rises 250%

This is despite a reasonable pick-up in tax revenues during the month as economic activity gradually reverts to normalcy amid the pandemic

Best of BS Opinion: No escape from extra borrowing, Covid-19, and more

Here's a selection of Business Standard opinion pieces for the day

No escape from extra borrowing

Despite growth likely in the second half of the year, revenue gap will be large leading to higher borrowing and expenditure management

Statsguru: Rough terrain for states amid slowing economy hit by Covid-19

In FY20, provisional accounts indicate that states' revenue receipts were 12 per cent lower than the Budgeted amount

In April-August, India's fiscal deficit at 109% of full-year target

Fiscal deficit or the gap between the expenditure and revenue had breached the annual target in July.

FinMin unlikely to take Covid-hit FY21 as a base for FY22 Budget

FY20 is being considered for a 'more realistic comparison'

Has the fiscal deficit reached 83% of FY21 target in Q1 itself? Not really

The figures we should consider to calculate fiscal deficit should be the enhanced borrowing level announced in May, rather than the one announced in February

Worrying macro dynamics

Growth in govt spending is leading to fiscal stress, crowding out

The problem of tax buoyancy

The Union government's tax buoyancy has never been very high

Back to February 28

Variation between revised and final Budget numbers has grown

A day after, bond yield closes flat at 6.16% amid liquidity surplus

Given the plan to borrow an additional Rs 4.2 trillion from the market, yields will show a tendency to move up. But, the huge liquidity in the system kept the rise in check, bond dealers said.

Govt unlikely to grant any package for industry to pay workers' salaries

"The government lacks the fiscal space. It will not be feasible to give grants to the industry to take care of its wage bills," sources said.

States also flout Budget numbers discipline

More attention needs to be focused on state Budgets

Chhattisgarh's subsidy burden up by 41%, CM presents Rs 95,650 cr budget

Besides loan waivers, the state government had doled out a number of subsidy schemes last year. The bonus to farmers, reducing the electricity bill to half were a few