Government Spending

Economists reckon this recovery could be a sign of the broadbasing of consumption in the economy, with rural consumption leading the way

Experts said meeting the gross tax revenue budget target of ₹42.7 trillion would be difficult as it would require a Y-o-Y expansion of 22 per cent in the November-March FY26 period.

Most states have reduced their market borrowings, and raised less-than-projected amounts via state government securities, pushing up yields for short-term papers that the Centre typically uses

The CAG has asked the Centre and all the states to start using standard categories for recording government spending, to make accounting and auditing uniform across the country, latest by fiscal year 2027-28. The CAG advisory seeks to do away with the wide variation among states in the operation of expenditure heads at the disaggregated level. The matter had been engaging the attention of multiple stakeholders and was impacting inter-temporal and inter-state comparison as well as those with the Union Government, Jayant Sinha, Deputy CAG (Government Accounts) and Chairperson (GASAB) has said. The Comptroller and Auditor General of India (CAG) has notified a common list of heads of expenditure at the disaggregate level, commonly referred to as 'Object Heads' of expenditure. This is being done as part of recent initiatives to strengthen public financial management in the country, Sinha said. Wide variation in the depiction of expenditure of economic nature at the disaggregate level .

Capital expenditure for April 2025 surged by 61 per cent year-on-year to ₹1.6 trillion

US Defense Secretary Pete Hegseth estimates the Pentagon will save nearly $4 billion from the terminated IT and consulting contracts deemed non-essential

Curb in infra spending due to elections dragged growth down to 5.4 per cent in July-September, well below the 8.2 per cent average last fiscal year

Union Budget 2025: This Budget reflects a move towards fiscal consolidation, with lower reliance on borrowings and higher revenue from direct taxes

Industry body CII has suggested the government to stick to the fiscal deficit target of 4.9 per cent of GDP for 2024-25 and 4.5 per cent for 2025-26, cautioning that "overly aggressive targets" beyond these could adversely affect India's economic growth. "India has been growing rapidly amidst a slowing global economy. Prudent fiscal management for macroeconomic stability has been pivotal to this growth," said Chandrajit Banerjee, Director General, CII, elaborating on suggestions for the forthcoming Union Budget. 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. In preparation for this, the forthcoming budget could lay out a glide path to bring the central government's debt to below 50 per cent of GDP in the medium term (by 2030-31), and below 40 per cent of GDP in the long term, CII has suggested. Such an explicit target will have a positive impact on India's sovereign credit rating and ...

Rating agency ICRA on Monday said it expects sequential revenue growth for India Inc in the December quarter, led by improved rural demand and uptick in government spending, additionally supported by the festival season. However, headwinds such as uneven urban demand and evolving global uncertainties could weigh on growth in the second half of the fiscal, it said. On balance, ICRA said it expects the operating profit margin (OPM) for India Inc to improve in the coming quarters. As a result, the credit metrics of India Inc in the October-December period of FY25 are estimated to improve with the interest coverage ratio in the range of 4.5-5 times, against 4.1 times in Q2 FY25, the agency said. Commenting on the trends, Kinjal Shah, Senior Vice President and Co-Group Head -- Corporate Ratings, ICRA -- said while corporate India witnessed a muted sequential revenue growth in Q2 FY2025, led by the ongoing slowdown in urban demand, lower government spending amid monsoon-related disruptio

The Indian economy could grow between 7-7.2 per cent in the current fiscal on strong government spending, and higher manufacturing investments, but a tempered global growth will impact the outlook for the next fiscal, Deloitte India said on Tuesday. In its 'India Economy Outlook for October 2024', Deloitte said the thriving manufacturing sector, stable oil prices, and potential US monetary easing post-elections may boost India's capital inflows, reduce production costs, and enhance long-term investments and job opportunities. The economy grew 6.7 per cent year-over-year in the April-to-June quarter of the current fiscal ending March 2025. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally. Deloitte India retains its annual GDP growth projection to be between 7 per cent and 7.2 per cent in FY 2024-2025 and between 6.5 per cent and 6.8 per cent the following year, it said in a statement. India's central bank RBI had

Despite strong growth relative to other economies, India is lagging on job creation and more inclusive economic growth

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

Union Budget 2024-25: The fiscal deficit is estimated at 4.9% of the GDP for the current financial year and the government aims to reduce it to below 4.5% next year

A modest expenditure plan could give an extra fillip to India's bond market, where benchmark yields are edging toward a 2-year low

The government on Monday sought Lok Sabha's approval for a net additional spending of Rs 78,673 crore in the current financial year. The second batch of supplementary demands for grants for 2023-24 fiscal was tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman. The supplementary demands for grants includes a gross additional spending of over Rs 2 lakh crore, which would be matched by savings of over Rs 1.21 lakh crore. The proposal involves net cash outgo aggregating to Rs 78,672.92 crore, said the document tabled in the Lok Sabha.

It's important to see the quality of spending and missing gaps in resource provision

The Rs 540 crore fund is the first instalment of the Pradhan Mantri Awas Yojana - Gramin, focused on the socio-economic development of particularly vulnerable tribal groups

This move will give the private sector scope to pick up the slack in the coming years

New Zealand's economy is expected to remain sluggish for another two years, although the overall picture is rosier than many observers had feared, new figures released Tuesday indicate. The nation's Treasury released the projections ahead of an election next month. They showed a slight deterioration from earlier predictions, with tax takes lower than expected and high inflation causing ongoing headaches. Unemployment is expected to jump from a current rate of 3.6 per cent to 5.4 per cent in 2025 before falling again, while economic growth is expected to fall from 3.1 per cent this year to 1.3 per cent next year, before bouncing back to 3.3 per cent by 2026. Net debt as a percentage of the economy is expected to peak at 23 per cent in 2025. Treasury said subdued house price growth and a tougher labour market would dampen household wealth and incomes, and that exporters, including farmers, faced ongoing headwinds. A predicted return to the government running budget surpluses was pushe