Page 7 - Latest Updates on Fiscal Deficit
Explained: What is fiscal deficit and what it means for economic stability
As of January 2025, India's fiscal deficit for FY25 is projected at 4.9 per cent of GDP, amounting to approximately Rs 16.1 trillion
 "Explained: What is fiscal deficit and what it means for economic stability")
Govt may forecast stronger growth next FY while sticking to fiscal targets
It is likely to forecast nominal economic growth of 10.3 per cent-10.5 per cent. That's higher than the forecast of 9.7 per cent for the current year
 "Govt may forecast stronger growth next FY while sticking to fiscal targets")
FY26 profit growth hinges on revenue trajectory: UTI AMC CIO Subramaniam
There may not be any major changes in direct taxation, given that simplification has already been carried out in recent years
 "FY26 profit growth hinges on revenue trajectory: UTI AMC CIO Subramaniam")
Govt's fiscal deficit target in reach despite lower GDP estimate
The Budget had assumed nominal GDP to grow 10.5 per cent for FY25
 "Govt's fiscal deficit target in reach despite lower GDP estimate")
Next steps in fiscal management: Road map needed for debt, deficit targets
The Central government debt is projected to decline from 58.1 per cent of GDP in 2023-24 to 56.8 per cent in 2024-25
 "Next steps in fiscal management: Road map needed for debt, deficit targets")
April-Nov fiscal deficit at 52.5% of full-year target, shows govt data
Total government expenditure for the eight months was 27.41 trillion rupees, or about 57% of the annual goal. The government spent 26.52 trillion rupees in the same period last year
 "April-Nov fiscal deficit at 52.5% of full-year target, shows govt data")
Govt aims to bring down fiscal deficit to 4.5% in FY26: Finmin report
Finance Minister Nirmala Sitharaman is schedule to present the Budget for 2025-26 in Parliament on February 1
 "Govt aims to bring down fiscal deficit to 4.5% in FY26: Finmin report")
States' sops may divert resources away from infra development: RBI article
The report said that several states have announced sops in their 2024-25 Budgets; such spending may divert resources away from critical social and economic infra development
 "States' sops may divert resources away from infra development: RBI article")
State govt fiscal situation improves; sops may crowd out resources
Market borrowing surged 32.8% in FY24, RBI report says
 "State govt fiscal situation improves; sops may crowd out resources")
Govt likely to target FY26 fiscal deficit at 4.4% of GDP to support growth
Looks to ensure enough financial headroom amid global headwinds
 "Govt likely to target FY26 fiscal deficit at 4.4% of GDP to support growth")
CII urges govt to stick to fiscal deficit target of 4.9% of GDP for 2024-25
CII also highlighted the announcement in the Union Budget 2024-25 to keep the fiscal deficit at levels that help reduce the debt-to-GDP ratio
 "CII urges govt to stick to fiscal deficit target of 4.9% of GDP for 2024-25")
Trade gap, FPI outflows push banking liquidity into deficit after 2 months
The liquidity in the banking system stood at a deficit of Rs 6,956 crore on Monday, according to the latest data from the Reserve Bank of India
 "Trade gap, FPI outflows push banking liquidity into deficit after 2 months")
Fiscal deficit at 46.5% of full-year target at Oct-end, shows govt data
In absolute terms, the fiscal deficit -- the gap between government's expenditure and revenue -- was at Rs 7,50,824 crore during April-October period
Fiscal deficit likely to be at 4.75% in FY25; capex at Rs 62K cr: IndRa
The revenue expenditure, excluding subsidies, will be 0.12 per cent of GDP, lower than the budget estimate
 "Fiscal deficit likely to be at 4.75% in FY25; capex at Rs 62K cr: IndRa")
Impacting growth, liquidity management: Shifting sands of fiscal policy
There is a very high chance that the actual fiscal deficit target will undershoot even 4.9 per cent of GDP as there was a decline in government expenditure during the general elections
 "Impacting growth, liquidity management: Shifting sands of fiscal policy")
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
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")