Deficit

India posts $2 bn current account deficit in May as trade gap widens

India recorded a $2 billion current account deficit in May as the merchandise trade gap widened, while the balance of payments registered a deficit of $4.4 billion

State stats: Handouts, pension scheme fuel state revenue deficit worries

High revenue deficit tells us that the governments borrow from the markets just to meet their current expenditure and do not generate assets

16th Finance Commission urges states to boost revenues, cut spending

The commission did not recommend revenue deficit grants to states or any sector-specific or state-specific grants

India likely to breach budgeted fiscal deficit target for FY27: BMI

India's fiscal deficit is likely to breach the budgeted target for current fiscal and hit 4.5 per cent of GDP as the government's policy response to the West Asia conflict could strain public finances, research firm BMI said on Wednesday. The government in 2026-27 Budget had projected a 4.3 per cent fiscal deficit, a tad lower than 4.4 per cent as per revised estimates for 2025-26. BMI also expects the government to introduce policies to redirect critical inputs to key industries, restrain business costs and improve financial support for firms. BMI said it also expects the government to consider restrictions on exports of scarce inputs such as helium and sulphur -- used for producing semiconductor chips. It said that since sulphur is also an important ingredient for making fertilisers, the government will strive to minimise disruptions to the agriculture sector, which employs 43 per cent of India's workforce. The government will seek to restrain cost increases for businesses affec

The discontinuation of revenue deficit grants signals new fiscal path

The first of a two-part series explains how the Centre has adhered to a fiscal consolidation path and why it is imperative for states to align their fiscal trajectories too

16th FC charts Union's fiscal path: Falling deficit, rising capex

The Sixteenth Finance Commission has proposed a consolidation roadmap that balances development needs with fiscal prudence

How India's brain drain and foreign students dip led to $6 billion deficit

The rising trend of Indian students studying abroad and the declining number of foreign students in India have contributed to a significant $6 billion deficit in the country's current account balance

Liquidity deficit in banks widens to Rs 3.3 trn due to GST outflows

The banking system's liquidity primarily stayed in deficit during the third quarter of the current financial year and it widened further in January, driven by tax outflows

Fiscal deficit for Apr-Nov narrows to 50.7% at Rs 9.07 trillion: Govt

Earlier this month, finance minister for state Bhagwat Karad said that the Centre was confident of meeting the fiscal deficit target of 5.9% in FY24

Worst of liquidity crunch may be over, VRR, govt spending to lower deficit

VRR auctions, govt spending likely to help ease situation

India's fiscal deficit between Apr-Oct 45% of FY24 target of Rs 17.87 trn

Between April and October this year, the fiscal deficit was recorded at Rs 8.04 trillion as compared to Rs 7.57 trillion in the same period last year

Canada to run deeper deficits as Trudeau's govt tackles housing crisis

The total cost of the new tax and spending measures is C$20.8 billion ($15.2 billion) over six years, according to a fiscal update from Finance Minister Chrystia Freeland

General govt deficit moderated to 9.4% of GDP in 2022-23, says RBI report

The general government deficit and debt moderated to 9.4% and 86.5% of GDP, respectively, in 2022-23 from peak levels of 13.1% and 89.4% in 2020-21 respectively, says RBI

Govt may close FY23 with Rs 50,000 cr shortfall in direct tax mop up

Deficit in overall indirect tax receipts likely due to contraction in customs and excise collections

Pakistan's current account deficit shrank 90% in January, says SBP

SBP said the country's current account deficit shrank by 90 % in January from the same month last year as the government continued with its strategy to restrict imports

S&P affirms Kerala's 'BB-/B' rating, gives outlook stable to state

Deficits resulting from spending on socio-economic programmes constrain ratings for the state: Agency

Many states are seeing a steep fall in cost of their debt, finally

Large borrowing states not coming to the market or drawing down less than indicated amounts

In second term as Kerala CM, Pinarayi Vijayan stares at a Rs 3-trn debt

The state has negotiated a series of crises in the form of natural disasters to the Covid pandemic with a great amount of resilience since 2017

Covid may force govt to borrow more; monetising deficit last resort: Report

Revenue shortfalls in India, the major economy hardest hit by the pandemic, are likely to force the government to borrow more, but it will only consider monetising its deficit as a last resort

Monetary policy for exceptional times

Monetisation of deficit is unlikely to spark inflation