 "What is Fiscal Policy")
Fiscal Policy
What is Fiscal Policy
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Latest Updates on Fiscal Policy
Economic matters should transcend political divides: Nirmala Sitharaman
BS Manthan: Union Finance Minister Nirmala Sitharaman described the ongoing global turbulence as a "splashing" of forces, urging India to actively participate rather than remain a bystander
 "Economic matters should transcend political divides: Nirmala Sitharaman")
State debt dynamics: Strict fiscal rules needed to reverse disparities
The RBI's frequent intervention to cap spreads in bond markets of heavily indebted states also leads to market indiscipline
 "State debt dynamics: Strict fiscal rules needed to reverse disparities")
NITI Aayog's fiscal health index needs clarity and better data use
Despite fact that Constitution assigns states predominant role in provision of social services and co-equal responsibility in economic services, their fiscal performance has not received much focus
 "NITI Aayog's fiscal health index needs clarity and better data use")
NCAER paper recommends states to create independent fiscal councils
Several bodies in the past had recommended a fiscal council for the central government
 "NCAER paper recommends states to create independent fiscal councils")
Economic Survey 2024-25: Key highlights and challenges the CEA presents
India's economy is expected to grow between 6.3 per cent and 6.8 per cent in FY26. Chief Economic Adviser believes India is on a steady growth path while globalisation is slowing down
 "Economic Survey 2024-25: Key highlights and challenges the CEA presents")
Fiscal-monetary coordination at its best in last six years: Shaktikanta Das
Reserve Bank Governor Shaktikanta Das, in a series of posts on X, on his last day of his six-year term as RBI Governor, also thanked the Finance Minister, various stakeholders and his colleagues
 "Fiscal-monetary coordination at its best in last six years: Shaktikanta Das")
India's GDP growth loses momentum: What's behind the urban spending freeze?
India's swelling urban middle class has been the engine of its growth for far longer than government capex has
 "India's GDP growth loses momentum: What's behind the urban spending freeze?")
Widening cracks in state finances: Revenue deficits risk fiscal stability
These state-specific fiscal vulnerabilities need appropriate policy considerations to enable sustainable fiscal recovery and innovative ways to augment the revenue space
 "Widening cracks in state finances: Revenue deficits risk fiscal stability")
China's stimulus measures not enough, says Yellen and IMF chief economist
Gourinchas told a news conference on the IMF's latest forecasts that China's fiscal stimulus measures so far lacked detail and therefore were not included in the IMF's China growth outlook
 "China's stimulus measures not enough, says Yellen and IMF chief economist")
Kerala to host conclave of 5 opposition-led states to discuss fiscal issues
Left-ruled Kerala and AAP-governed Punjab, the states that will take part in the conclave are Tamil Nadu (DMK) and the Congress-ruled states of Karnataka and Telangana
 "Kerala to host conclave of 5 opposition-led states to discuss fiscal issues")
Revamped strategy for India's fiscal architecture in post-pandemic times
India's post-pandemic fiscal architecture should be anchored in debt and be holistic (encompassing Centre and states), dynamic (responsive to changing macro conditions), and conservative
 "Revamped strategy for India's fiscal architecture in post-pandemic times")
Flexible fiscal targets
India needs a sustainable and clear framework
 "Flexible fiscal targets")
April-June fiscal deficit at Rs 1.36 trillion, 8.1% of 2024-25 target
Total government expenditure during the period was Rs 9.7 trillion, or about 20.4 per cent of the annual goal, lower than the Rs 10.51 trillion in the same period last year
 "April-June fiscal deficit at Rs 1.36 trillion, 8.1% of 2024-25 target")
New fiscal policy questions
India needs a fiscal road map consistent with the objectives of faster debt reduction
 "New fiscal policy questions")
Strong fiscal position likely to enhance India's growth, says ADB
Asian Development Bank keeps FY25 growth projection unchanged at 7%
 "Strong fiscal position likely to enhance India's growth, says ADB")
Short debt's share in total external debt down 2.1 percentage points: RBI
The ratio of short-term debt to foreign exchange reserves declined to 19.0 per cent at end-March 2024 from 22.2 per cent at end-March 2023
 "Short debt's share in total external debt down 2.1 percentage points: RBI")
World Bank working paper advocates increased devolution for Panchayats
Empowering ward members (WMs) within village councils, who currently lack financial resources and act merely as rubber stamps, is another recommendation
 "World Bank working paper advocates increased devolution for Panchayats")
Ratings and reforms
Fiscal position should be improved with sustained growth
 "Ratings and reforms")
Borrowing to consume
Consumption-based borrowing by the household sector makes investment capital even more expensive
 "Borrowing to consume")
The state of state budgets
With states expected to push the reforms agenda, a mechanism is needed for assessing their budget data
 "The state of state budgets")
