Fiscal Policy

Economic matters should transcend political divides: Nirmala Sitharaman

BS Manthan: Union Finance Minister Nirmala Sitharaman described the ongoing global turbulence as a "splashing" of forces, urging India to actively participate rather than remain a bystander

State debt dynamics: Strict fiscal rules needed to reverse disparities

The RBI's frequent intervention to cap spreads in bond markets of heavily indebted states also leads to market indiscipline

NITI Aayog's fiscal health index needs clarity and better data use

Despite fact that Constitution assigns states predominant role in provision of social services and co-equal responsibility in economic services, their fiscal performance has not received much focus

NCAER paper recommends states to create independent fiscal councils

Several bodies in the past had recommended a fiscal council for the central government

Economic Survey 2024-25: Key highlights and challenges the CEA presents

India's economy is expected to grow between 6.3 per cent and 6.8 per cent in FY26. Chief Economic Adviser believes India is on a steady growth path while globalisation is slowing down

Fiscal-monetary coordination at its best in last six years: Shaktikanta Das

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 GDP growth loses momentum: What's behind the urban spending freeze?

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

Widening cracks in state finances: Revenue deficits risk fiscal stability

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

China's stimulus measures not enough, says Yellen and IMF chief economist

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 to host conclave of 5 opposition-led states to discuss fiscal issues

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 .

Revamped strategy for India's fiscal architecture in post-pandemic times

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

Flexible fiscal targets

India needs a sustainable and clear framework

April-June fiscal deficit at Rs 1.36 trillion, 8.1% of 2024-25 target

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

New fiscal policy questions

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

Strong fiscal position likely to enhance India's growth, says ADB

Asian Development Bank keeps FY25 growth projection unchanged at 7%

Short debt's share in total external debt down 2.1 percentage points: RBI

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

World Bank working paper advocates increased devolution for Panchayats

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

Ratings and reforms

Fiscal position should be improved with sustained growth

Borrowing to consume

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

The state of state budgets

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