Page 8 - Latest Updates on Fiscal Policy
Severe shock to consumption, economy will take longer to recover: RBI
"Retrenchment in activity that is unprecedented in history," says the annual report released by the central bank
 "Severe shock to consumption, economy will take longer to recover: RBI")
The joker in the pack
Government's fiscal headroom is crucially linked to a realistic assessment of its net revenue collection
 "The joker in the pack")
India has more scope for policy support despite limited fiscal space: IMF
Says the country's measures are tilted towards 'below-the-line' support such as food subsidy and other measures, rather than direct fiscal spending
 "India has more scope for policy support despite limited fiscal space: IMF")
Top headlines: Next fiscal policy, peak gold prices, CARE ratings and more
Here are the top headlines of the day
 "Top headlines: Next fiscal policy, peak gold prices, CARE ratings and more")
Managing public debt
India needs structural changes in economic management
 "Managing public debt")
Early signals for the fisc
The April-May figures show a sharp rise in external financing and spending on farm as well as rural India
Why Moody's downgrade is not a bolt from the blue but still not justified
While this downgrade will not affect the sovereign as it does not borrow overseas, it will however affect Indian companies borrowing from abroad
 "Why Moody's downgrade is not a bolt from the blue but still not justified")
Leave the PSUs alone for now
Government sell-off is a stimulus for itself and might not work at this juncture
FM gives reforms pill for ailing economy with privatisation, policy tweaks
In the latest announcement, the government's focus was on structural reform in sectors such as coal, minerals, aviation, defence, aerospace, power, and social infrastructure
 "FM gives reforms pill for ailing economy with privatisation, policy tweaks")
'Very limited' fiscal space may leave govt with Rs 20,000 cr for stimulus
Households contributes maximum to the gross value addition (44.3% during FY12-FY19), savings (61.1%) and fixed capital (39.2%) in the economy
 "'Very limited' fiscal space may leave govt with Rs 20,000 cr for stimulus")
India to cap stimulus package at $60 bn to protect credit rating: Report
Fitch warned India's sovereign rating could come under pressure if its fiscal outlook deteriorates further
 "India to cap stimulus package at $60 bn to protect credit rating: Report")
Will more foreign financing be needed?
It is important to remove the frictions, to connect the infinite capital of the global financial system with end-users in India
 "Will more foreign financing be needed?")
Covid-19 relief: Here are the steps taken by the RBI to fight slowdown
Among other important announcements, he announced a reduction in reverse repo rate by 25 basis points from 4 per cent earlier to 3.75 per cent now
 "Covid-19 relief: Here are the steps taken by the RBI to fight slowdown")
Covid-19: RBI slashes reverse repo rate by 25 bps, no change in repo rate
Earlier, the RBI had reduced the repo rate to a 15-year low of 4.40 per cent by announcing a steep cut of 75 basis points on March 27, only two days after the national lockdown was imposed
 "Covid-19: RBI slashes reverse repo rate by 25 bps, no change in repo rate")
Covid-19: Ease fiscal policy, let states borrow from RBI, says Kerala FM
On Tuesday, Kerala had to offer an interest rate of 8.96 per cent for Rs 6,000 crore market borrowing for state development loan for a 15-year period
 "Covid-19: Ease fiscal policy, let states borrow from RBI, says Kerala FM")
Questions about borrowing
The funding need can change materially
 "Questions about borrowing")
Now what?
Once the lockdown is lifted, we will need the mother of all fiscal and monetary policy support to sustain the economy
 "Now what?")
AGR dues paid by telcos to reflect in FY20 revenue receipts: Report
Officials said the amount was not much to have any bearing on the fiscal position
 "AGR dues paid by telcos to reflect in FY20 revenue receipts: Report")
Budget disappointing; but fiscal, taxation measures welcome: EAC member
India's GDP growth is expected to slip to a decadal low of 5 per cent this fiscal, pressured by domestic factors like drop in consumption, as well as global issues
 "Budget disappointing; but fiscal, taxation measures welcome: EAC member")
Why fiscal rules should be revisited
According to the revised FRBM rules, as amended by the Finance Act, 2018, the central government debt stock should not exceed 40 per cent of GDP by the end of financial year 2024-25