Page 2 - Latest Updates on Fiscal Policy
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")
Centre must be concerned with fiscal mismanagement of states: Supreme Court
The dialogue between the Centre and the state must not stop merely because of the pending suit, the court said while stressing on the need to resolve the issue
 "Centre must be concerned with fiscal mismanagement of states: Supreme Court")
External exposure
Foreign flows will demand strong fiscal management
 "External exposure")
White Paper on Indian economy tabled: Tracks 'Fragile 5' to 'Top 5' journey
Within hours of Prime Minister Narendra Modi praising his predecessor Manmohan Singh in the Rajya Sabha, the White Paper criticised almost all aspects of the UPA rule under Singh
 "White Paper on Indian economy tabled: Tracks 'Fragile 5' to 'Top 5' journey")
India's Interim Budget represents responsible fiscal management: USISPF
According to budget projections, the fiscal deficit for the upcoming financial year (2025) will narrow to 5.1 per cent and GDP growth will remain between 6-7 per cent GDP
 "India's Interim Budget represents responsible fiscal management: USISPF")
Interim Budget: Gross market borrowing music to ears of bond market
In the current year, the gross market borrowings are estimated at Rs 15.4 trillion, and the net borrowing at Rs 11.8 trillion - the highest-ever government borrowing programme
 "Interim Budget: Gross market borrowing music to ears of bond market")
Interim Budget 2024-25: 'Commitment to fiscal prudence and growth'
India has emerged as one of the most preferred destinations for global investors
Interim Budget 2024: 'A transformative yet prudent financial statement'
Overall, the government has presented a forward-looking Budget with enough assurances to trust it to lay down the roadmap through the full Budget and sticking to GDP
 "Interim Budget 2024: 'A transformative yet prudent financial statement'")
Interim Budget: 'Fiscally prudent, growth-promoting pronouncement'
The underlying nominal GDP growth assumption of 10.5 per cent for the Budget and tax collection estimates are realistic
 "Interim Budget: 'Fiscally prudent, growth-promoting pronouncement'")
Macro balancing act in 2024
The imperatives for 2024 are more nuanced: Nurturing recovery while ensuring public debt is stabilised and financial exuberance contained
 "Macro balancing act in 2024")
Kerala criticises Centre's fiscal approach, notes low alcohol tax revenue
In the document, the Governor said his government's stupendous achievements have come about despite many formidable challenges confronting it
 "Kerala criticises Centre's fiscal approach, notes low alcohol tax revenue")
Fiscal policy reset
Faster consolidation will require expenditure adjustments
 "Fiscal policy reset")
Budget 2024 expectations: What stance will interim Budget 2024 adopt?
Nirmala Sitharaman's recent statement that the February 1 Budget would just be a vote on account could mean that she will uphold the convention surrounding an interim Budget
 "Budget 2024 expectations: What stance will interim Budget 2024 adopt?")
PLI payout for FY24 may lag behind govt's estimate of over Rs 11,000 crore
Ministries asked to ensure scheme is 'aggressively' monitored
 "PLI payout for FY24 may lag behind govt's estimate of over Rs 11,000 crore")
Will interim Budget 2024 revive demand and investment?
The interim Budget 2024-25 on February 1 will likely see the central government boost investment, while still sticking to the fiscal consolidation path
 "Will interim Budget 2024 revive demand and investment?")
