Page 31 - Latest Updates on Fiscal Deficit
Gulf nation's fiscal diet risks deeper pain amid oil price uncertainty
Brent prices have rebounded since plunging to a more than 20-year low in April, but at just over $40 per barrel, they are significantly below what most Gulf states would need to balance their budgets
 "Gulf nation's fiscal diet risks deeper pain amid oil price uncertainty")
In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA
The borrowing alternative offered by the Centre to make up for the shortfall in the promised compensation will lead to the states' fiscal deficits widening to 4.25 - 5.52 per cent
 "In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA")
Statsguru: 24% GDP contraction and enormity of Centre's fiscal challenge
If annual expenditure is kept unchanged from the budgeted Rs 30 trillion, a worst-case scenario can push Centre's fiscal deficit to 8.1 per cent of GDP
 "Statsguru: 24% GDP contraction and enormity of Centre's fiscal challenge")
Considering fiscal deficit range instead of number, says N K Singh
Singh said the 15th Finance Commission had not sought any extension and will finish its report for 2021-22 to 2025-26 by October 31
 "Considering fiscal deficit range instead of number, says N K Singh")
15th FC panel suggests giving range for fiscal deficits for Centre, states
Singh said the commission did not brush aside the suggestion, however, a final decision on providing a range as fiscal deficit targets is yet to be taken
 "15th FC panel suggests giving range for fiscal deficits for Centre, states")
Sensex up 273 pts; Bharti Airtel up 7%, Voda Idea dips 13% post AGR verdict
All that happened in the markets today
 "Sensex up 273 pts; Bharti Airtel up 7%, Voda Idea dips 13% post AGR verdict")
Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more
Here are the top business headlines on Tuesday
 "Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more")
At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates
With GDP for April-June also in, it can be calculated that fiscal deficit for Q1FY21 was 17.4% of nominal GDP. FM Sitharaman had pegged fiscal deficit for the year at 3.5% of GDP in 2020-21 Budget
 "At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates")
India's fiscal deficit crosses full-year budgeted target in four months
Net tax receipts were Rs 2.03 trillion, while total expenditure was Rs 10.5 trillion
 "India's fiscal deficit crosses full-year budgeted target in four months")
Fiscal deficit to touch 7% in FY21 as Covid hits revenue: Brickwork Ratings
Revenue from income taxes (personal income tax and corporate income taxes) was lower by 30.5 per cent, and the GST by almost 34 per cent during the period
 "Fiscal deficit to touch 7% in FY21 as Covid hits revenue: Brickwork Ratings")
Rise in fiscal deficit likely to impact construction sector this yr: Report
The agency had recently noted that the fiscal deficit of central and state governments will come at 12.1 per cent with the states contributing 4.5 per cent of it
 "Rise in fiscal deficit likely to impact construction sector this yr: Report")
RBI's payout unlikely to plug the huge govt revenue hole created by Covid
Last year the RBI's board approved a record payment of Rs 1.76 trillion ($23.5 billion) to the government, which included Rs 1.23 trillion as dividend and Rs 526.4 billion from its surplus capital
 "RBI's payout unlikely to plug the huge govt revenue hole created by Covid")
Rollback time: What didn't work for govts earlier will not work even now
Long discarded policies like deficit monetisation, loan restructuring, higher tariffs and import licensing had not yielded great results even the first time around, points out T N Ninan
It is not too late, but it soon will be
The fragility of central government finances is partly legacy, part refusal to acknowledge and address the problem due to the lack of strategic vision and poor institutional capability
Handling the dollar deluge
Diverging fiscal responses to the crisis can create serious macroeconomic challenges for countries globally
 "Handling the dollar deluge")
Share of external financing of fiscal deficit soars to 4.5% in Q1: Report
The government has run 83 per cent of its borrowing target as of June, according to official numbers released on July 31, due to the impact of the pandemic that crippled the economy
 "Share of external financing of fiscal deficit soars to 4.5% in Q1: Report")
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
 "Has the fiscal deficit reached 83% of FY21 target in Q1 itself? Not really")
Fiscal deficit at 83.2% of budget estimates in Q1 on poor tax collection
Fiscal deficit during the corresponding period of last year was 61.4 per cent of the budget estimates
 "Fiscal deficit at 83.2% of budget estimates in Q1 on poor tax collection")
Bridging the gap
Govt should monetise assets to sustain expenditure
 "Bridging the gap")
States' mkt borrowings jump 76% to Rs 1.93 trn so far this fiscal: Report
In addition, the Centre has also relaxed the fiscal deficit target from 3 to 5 per cent.
 "States' mkt borrowings jump 76% to Rs 1.93 trn so far this fiscal: Report")