Page 26 - Latest Updates on Fiscal Deficit
States' fiscal deficit to narrow to 4.3% of GDP in FY22: Ind-Ra
The agency's earlier forecast for FY21 was 4.5 per cent. The revision was made due to a sharper-than-expected contraction of 6.1 per cent in the nominal GDP
 "States' fiscal deficit to narrow to 4.3% of GDP in FY22: Ind-Ra")
State's fiscal deficit to rise marginally to 3.3% in FY18: Ind-Ra
Market borrowings of the states will increase to Rs 3.7 lakh cr from the Rs 3.5 lakh cr in FY17
 "State's fiscal deficit to rise marginally to 3.3% in FY18: Ind-Ra")
States' fiscal deficit to narrow to 4.3% of GDP in fiscal 2022: Report
The aggregate fiscal deficit of states is likely to be at 4.3 per cent of the GDP in 2021-22 compared to 4.6 per cent in 2020-21, says a report by India Ratings and Research
 "States' fiscal deficit to narrow to 4.3% of GDP in fiscal 2022: Report")
Best of BS Opinion: Increasing fiscal constraints, Budget 2021, and more
Here's a selection of Business Standard opinion pieces for the day
 "Best of BS Opinion: Increasing fiscal constraints, Budget 2021, and more")
Increasing fiscal constraints
Govt must focus on mobilising more revenues
 "Increasing fiscal constraints")
Best of BS Opinion: A steep fiscal correction, a strategy for GST, and more
Here's a selection of Business Standard opinion pieces for the day
A steep fiscal correction
With modest revenue effort, the burden of cutting the deficit will fall on a big expenditure contraction
 "A steep fiscal correction")
FM's 'Mool Mantra': Can't dodge fiscal deficit, has to be carefully tackled
Sitharaman asserts while govt can give stimulus, long-term infra financing is job of DFIs. Private players in this space will make funding competitive
 "FM's 'Mool Mantra': Can't dodge fiscal deficit, has to be carefully tackled")
Govt taking steps to carefully monitor fiscal deficit: FM Sitharaman
Finance Minister Nirmala Sitharaman on Monday said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 per cent of the GDP for the current financial year.
 "Govt taking steps to carefully monitor fiscal deficit: FM Sitharaman")
Higher deficit shouldn't put pressure on India's sovereign rating: DEA Secy
India's sovereign rating should not come under pressure due to surge in fiscal deficit which was mainly on account of higher expenditure to deal with the C-19 pandemic, said Economic Affairs Secretary
 "Higher deficit shouldn't put pressure on India's sovereign rating: DEA Secy")
Confident of reducing fiscal deficit to 4.5% of GDP by FY26: Exp secy
The government is confident of lowering the fiscal deficit to 4.5% of GDP by 2025-26 fiscal, considering a nominal GDP growth of 10 per cent every year, Expenditure Secretary T V Somanathan said
 "Confident of reducing fiscal deficit to 4.5% of GDP by FY26: Exp secy")
Handle debt with care
Overall fiscal position can increase risks
Slower consolidation to constrain fiscal strength over medium term: Moody's
Rating agency Moody's on Wednesday India's fiscal deficit projections are higher than expected
 "Slower consolidation to constrain fiscal strength over medium term: Moody's")
Morgan Stanley ups Sensex target to 55,000; bullish on cyclicals, midcaps
We believe the overall approach of the fiscal policy is in line with the message from the Economic Survey, said Morgan Stanley in a post Budget note
 "Morgan Stanley ups Sensex target to 55,000; bullish on cyclicals, midcaps")
Fiscal deficit may invite rating agencies' ire, Fitch may downgrade: Report
Global rating agencies may view the fiscally expansive budget proposals negatively, a brokerage said
 "Fiscal deficit may invite rating agencies' ire, Fitch may downgrade: Report")
With off-budget borrowings, FY22 fiscal deficit rises to 6.9%: Report
The fiscal deficit target will go up by 10 basis points to 6.9 per cent of the GDP if the extra-budgetary borrowings of Rs 30,000 crore is added, according to a report
India's fiscal targets higher; consolidation slower than expected: Fitch
The wider deficits and more gradual pace of consolidation will lift India's government debt
 "India's fiscal targets higher; consolidation slower than expected: Fitch")
Wider fiscal deficit, consolidation could pressure India's ratings: Fitch
Fitch had placed India's "BBB-" rating on a negative outlook in June 2020 due to the pandemic's impact on growth prospects and the challenges of the high debt burden
Budget 2021 LIVE: Budget is a shot in the arm for Indian economy, says S&P
Budget 2021 LIVE: Finance minister Nirmala Sitharaman in her Union Budget 2021 speech announced a slew of taxation reforms but left personal income tax slab unchanged. Track Budget 2021 highlights
 "Budget 2021 LIVE: Budget is a shot in the arm for Indian economy, says S&P")
Proper monetisation of assets can wipe off Budget deficits
Refreshingly, both in healthcare and infrastructure, the FM has talked about a plan that stretches well beyond a year. Along with education, these form the foundation for an inclusive society