India's Budget Deficit

Modi returned to power only with the support of coalition partners, who have been seeking more money for their states, already putting demands on the table for more than $15 bn in financial aid

A big surplus transfer will help the government in meeting any shortfall in disinvestment receipts and create room for funding welfare programmes after the elections

It has never happened that the budget estimate for dividends from such companies has failed

Interim budget likely to prioritise fiscal consolidation over populist spending, anticipating fiscal deficit at 4.5% of GDP by FY26

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

Bonds have since pared their gains, with the budget math increasingly looking daunting as commercial interest rates soar tracking a tight monetary policy

A sharp reduction in states' deficit augurs well for the Centre's fiscal planning

The lower fertilizer allocation will help with India's goal of cutting its budget deficit. Food and energy costs have jumped after Russia's invasion of Ukraine

What complicates matters for Sitharaman is that her food and energy bills are inflated by the war in Ukraine and given India runs a current-account deficit as well, the rupee has been weakening

A longstanding plan aims to shrink the shortfall to below 4.5% of GDP by 2025-26

The government has a target of raising 1.75 trillion rupees this year but progress on plans to sell insurance behemoth LIC or privatize oil refiner Bharat Petroleum have been slow

Refreshingly, both in healthcare and infrastructure, the FM has talked about a plan that stretches well beyond a year. Along with education, these form the foundation for an inclusive society

The performance of Indian equities will mirror a larger trend of EMs doing better than developed markets

Any cess or surcharge should be one-time

The government will ensure that state-owned enterprises continue with capital expenditure, she said

Yields on 10-year bonds slid as much as eight basis points to to 6.08 per cent after surging by as much as 12 basis points earlier.

FC's final report should mirror the interim award

Poorer tax compliance adds to the government's revenue collection woes amid a broader slowdown in the economy

India will post bigger budget deficits than previously forecast