Page 5 - Latest Updates on Fiscal Deficit
No commitment to lowering fiscal deficit, says Montek Singh Ahluwalia
Ahluwalia said if household net savings continue to decrease and fiscal deficit reduction is neglected, it could lead to significant problems, including crowding out of private investments
 "No commitment to lowering fiscal deficit, says Montek Singh Ahluwalia")
Andhra Pradesh govt presents Rs 2.9 trn budget; see all major allocations
The estimated revenue deficit stands at Rs 34,743 crore (2.12 per cent of the GSDP), while the fiscal deficit is estimated at Rs 68,743 crore (4.19 per cent of the GSDP)
 "Andhra Pradesh govt presents Rs 2.9 trn budget; see all major allocations")
Fiscal burden of subsidies triggers political debate, rethink on freebies
Political parties routinely make pre-poll promises of subsidies and freebies, but the fiscal burden of such guarantees weighs heavily on state budgets once in power
 "Fiscal burden of subsidies triggers political debate, rethink on freebies")
Centre's fiscal deficit at 29% of FY25 target; capex challenges loom
Rising tax revenues and RBI dividend boost receipts
 "Centre's fiscal deficit at 29% of FY25 target; capex challenges loom")
Rising deficit and debt puts Indian states under fiscal strain: NSE Report
Fiscal consolidation measures such as managing contingent liabilities, improving fiscal transparency, and enhancing the fiscal credibility of SDLs needed to address states' financial challenges
 "Rising deficit and debt puts Indian states under fiscal strain: NSE Report")
Pre-poll welfare schemes may not hit Maharashtra govt's fiscal health: ICRA
Borrowings remain within prudent norms
 "Pre-poll welfare schemes may not hit Maharashtra govt's fiscal health: ICRA")
States cut spending by 6%: Is public capex at risk of major slowdown?
Capital expenditures across 18 states declined by 6% year-on-year between April and August in FY25, totalling Rs 1.67 trillion, down from Rs 1.78 trillion during the same period the previous year
 "States cut spending by 6%: Is public capex at risk of major slowdown?")
Fiscal deficit in April-August at 27% of full-year target: Govt data
The fiscal deficit-the gap between expenditure and revenue-was 36 per cent of the budget estimates for the corresponding period last year
 "Fiscal deficit in April-August at 27% of full-year target: Govt data")
India's fiscal deficit for Apr-Aug at Rs 4.35 trn, 27% of full-year target
Net tax receipts for the period were 8.74 trillion rupees, or 34% of the annual target, compared with 8.04 trillion rupees for the same period last year, according to the data
 "India's fiscal deficit for Apr-Aug at Rs 4.35 trn, 27% of full-year target")
Centre's H2 borrowing likely to stay in line with budgeted amount
May borrow around Rs 6.3 trillion during the period
 "Centre's H2 borrowing likely to stay in line with budgeted amount")
RBI to infuse Rs 25K cr via VRR as liquidity turns deficit after two months
Market participants said the banking regulator may conduct more VRR auctions to infuse liquidity if the weighted average overnight money market rates do not align with the repo rate
 "RBI to infuse Rs 25K cr via VRR as liquidity turns deficit after two months")
UPS: Understanding the fiscal implications of govt's new pension scheme
The UPS is seen to be different from OPS since it is funded every year and the burden does not fall on future governments.
 "UPS: Understanding the fiscal implications of govt's new pension scheme")
Fiscal deficit to jobs: Economic issues new J&K govt has to tackle
The region is expected to clock a growth of 7% in FY25 but it's dependent on Central government grants
 "Fiscal deficit to jobs: Economic issues new J&K govt has to tackle")
Best of BS Opinion: Effects of overcapacity, Crucial choices and more
Here is the best of Business Standard's opinion pieces for today
 "Best of BS Opinion: Effects of overcapacity, Crucial choices and more")
Fiscal prudence through disclosure: A key Budget move that went unnoticed
Statement 27-A, a voluntary disclosure of state-owned entities' borrowings, introduced in the Budget for 2024-25, enhances fiscal transparency and signals prudent fiscal management
India's fiscal deficit in Apr-Jul at 17.2% of full-year target: CGA data
The deficit stood at 33.9 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24
 "India's fiscal deficit in Apr-Jul at 17.2% of full-year target: CGA data")
BS@50: How money has moved between Centre and states in the past 5 decades
Annual government spending has shot up. Fiscal deficit concerns remain. Between the Centre and states, sometimes one has scored over the other. An overview of government finances since 1975
 "BS@50: How money has moved between Centre and states in the past 5 decades")
UPS: Central staffers may get to keep higher returns from riskier bets
Employees could choose the investment plan of their choice based on their contribution and 10% contribution by the government
 "UPS: Central staffers may get to keep higher returns from riskier bets")
Fiscal deficit to increase by 15 bps to 5.1% in FY25 due to UPS: Macquarie
Under the unified system, employee contributions will remain unaltered at 10% of basic pay plus dearness allowance
UK borrows more than expected in July, underlining challenge for FM Reeves
The figures did not include recent pay deals struck between the new Labour government, elected last month in a landslide victory, and public sector workers including junior doctors
 "UK borrows more than expected in July, underlining challenge for FM Reeves")
