Page 43 - Latest Updates on Fiscal Deficit
To meet fiscal deficit target, govt may pare its IOC stake to under 51%
The government can sell as much as 26.4% its holding in Indian Oil -- valued at about Rs 330 billion -- and still retain indirect control
 "To meet fiscal deficit target, govt may pare its IOC stake to under 51%")
Slowdown: Indian GDP growth may slip further to 5% in FY20, says CLSA
Analysts at CLSA believe India's fiscal deficit may worsen to 4.3% in FY20
 "Slowdown: Indian GDP growth may slip further to 5% in FY20, says CLSA")
Why economists watered down India's July-Sept growth estimate to 4.2-4.7%
State Bank of India (SBI) joins global agencies such as the ADB, World Bank, OECD, RBI and the IMF in downgrading India's FY20 growth rates
 "Why economists watered down India's July-Sept growth estimate to 4.2-4.7%")
Economists estimate India's July-September GDP growth at 4.2-4.7%
Nomura chief economist Sonal Varma has put the Q2 growth at 4.2 per cent, similar to what SBI has estimated
 "Economists estimate India's July-September GDP growth at 4.2-4.7%")
Govt's expenditure and revenue figures for H1 don't tell the whole truth
The government's numbers on expenditure and receipts in the first half of the current year do not fully reveal the stress in its finances
 "Govt's expenditure and revenue figures for H1 don't tell the whole truth")
Fitch raises India's FY20 fiscal deficit to 3.6% of GDP on sluggish growth
Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY20 Union Budget due to weak GST collections
 "Fitch raises India's FY20 fiscal deficit to 3.6% of GDP on sluggish growth")
Centre following the fiscal glide path: DEA Secretary Atanu Chakraborty
The Centre could still rein in the deficit at the targeted level in the current financial year
 "Centre following the fiscal glide path: DEA Secretary Atanu Chakraborty")
Govt committed to following fiscal deficit glide path, says DEA secretary
Concerns have been raised by different agencies about the ability of the government to meet the fiscal deficit target
 "Govt committed to following fiscal deficit glide path, says DEA secretary")
Low tax revenue, high spend push H1 fiscal deficit to 93% of FY20 target
Though the figure seemed alarming, it was bit lower than 95.3 per cent in the corresponding period of 2018-19
 "Low tax revenue, high spend push H1 fiscal deficit to 93% of FY20 target")
April-September fiscal deficit at Rs 6.52 trillion, 92.6% of FY20 estimate
Net tax receipts in the first half of the current fiscal year ending in March 2020 were Rs 6.07 trillion, while total expenditure was Rs 14.89 trillion, the data showed
 "April-September fiscal deficit at Rs 6.52 trillion, 92.6% of FY20 estimate")
Govt unlikely to cut income-tax rate amid economic slowdown, fiscal stress
The government last fiscal missed its direct tax collection target, and for this financial year it has set a higher revenue mobilisation goal of Rs 13.80 trillion
 "Govt unlikely to cut income-tax rate amid economic slowdown, fiscal stress")
How to reform fiscal deficit
Expenditure on mitigating political risk should be explicitly separated from expenditure that entails economic risk
 "How to reform fiscal deficit")
Letter to BS: For decades govts have been manipulating fiscal numbers
Transparency in accounting will boost institutional morale leading to a rise in public trust in the government and the financial system
Important for India to keep fiscal deficit in check: IMF's Gita Gopinath
The prominent Indian-American economist was speaking to reporters ahead of the annual meeting of the IMF and the World Bank
 "Important for India to keep fiscal deficit in check: IMF's Gita Gopinath")
Will govt meet its fiscal deficit target? Bond traders are too skeptical
The central bank in August already approved a record Rs 1.76 trillion ($24.4 billion) payout to the government
 "Will govt meet its fiscal deficit target? Bond traders are too skeptical")
Rate cuts may help sovereign bonds post modest gains despite fiscal woes
Bond Bulls in India Bet on Rate Cuts to Counter Fiscal Worries
Congress hits out at govt, says fiscal deficit not at 3.3% but beyond 8%
Asserting that Indian economy has moved from recession to crisis mode, senior Congress leader Anand Sharma said PM Narendra Modi and Finance Minister Nirmala Sitharaman are 'oblivious' to situation
 "Congress hits out at govt, says fiscal deficit not at 3.3% but beyond 8%")
Delink the deficits: Linking revenue and fiscal deficits will lead nowhere
Revenue deficit comprises political payouts that are impossible to reduce in any significant measure. Minimising political risk means increasing revenue deficit
 "Delink the deficits: Linking revenue and fiscal deficits will lead nowhere")
Imbalances in the fiscal deficit debate
While criticising the fiscal deficit target in the FRBM Act, the commentariat ignores the fact that the legislation also stipulated a stiffer revenue deficit target
 "Imbalances in the fiscal deficit debate")
Time to do away with fiscal responsibility law? No virtue in stipulating 3%
Target years for reaching the desired fiscal deficit are pushed back; and when FMs are unable to get close to targets, they fudge the books and push the burden on to hapless PSUs, writes T N Ninan
