Fiscal Deficit

States' deficits run deeper than their Budgets, show CAG reports

CAG audits reveal that several Indian states understated their fiscal gaps in 2024-25 due to accounting practices, off-budget borrowings, and unrecorded liabilities

Centre exhausted 18% of fiscal deficit in Q1FY27, shows CGA data

Fiscal deficit stood at 18.2 per cent of the FY27 target as higher subsidy spending was offset by robust revenue growth and sustained capital expenditure

April-June fiscal deficit of India stood at 18.2% of 2026/27 target

Government data showed India's fiscal deficit reached Rs 3.1 trillion, or 18.2% of the FY27 target, as capital expenditure and overall spending increased in the first quarter

States are borrowing just to get by, not to build productive assets

Even prosperous southern states used a large part of FY25 debt for operational expenses

Tax collections slow down, pinching Centre and states' finances alike

States' own tax revenue now exceeds half of revenue receipts, but falling tax buoyancy suggests collections are not keeping pace with economic growth

TN govt taps Montek Singh Ahluwalia to chart roadmap for boosting revenue

Six-member panel will recommend measures to improve tax and non-tax revenues, enhance compliance and fiscal self-reliance amid the state's rising debt burden

We need a big breakthrough somewhere… a big project: West Bengal FM

West Bengal Finance Minister Swapan Dasgupta says the state needs a breakthrough investment project to revive industry, restore investor confidence and drive economic growth

Growth will be driven by project execution, not announcement: Odisha CM

Odisha Chief Minister Mohan Charan Majhi says the state is shifting from attracting investments to executing projects, with manufacturing and jobs driving growth

States' fiscal math in the age of 'freebies': Stable, but strains remain

While aggregate finances remain stable, high debt and welfare handouts weigh on some budgets

Improving cash transfers: Time to construct a firm policy framework for DBT

An EAC-PM study finds women's cash-transfer schemes improve savings and spending, but raises questions over their long-term fiscal sustainability

Weekly economy wrap: Energy relief, slower PMI, monsoon concerns mark week

Fuel curbs were withdrawn and LPG prices fell as energy pressures eased, but softer PMI readings, a wider fiscal deficit and inflation risks kept policy concerns alive

India's fiscal deficit rose 12-fold to ₹1.62 trillion in April-May

Within tax revenue, the government's excise duty collections fell nearly 20 per cent to Rs 2.12 trillion in April-May

India's April-May fiscal deficit at 9.6% of 2026-27 target: Govt data

India has set the fiscal deficit target for 2026-27 at 4.3% of GDP, or ₹16.96 trillion

Long road to 50 as govt moves fiscal anchor from deficit to debt-GDP ratio

A lower GDP base, subsidy pressures, geopolitical shocks and future spending commitments could make the Centre's goal of reducing debt to 50 per cent of GDP by FY31 significantly more challenging

Wider fiscal gap unlikely to threaten India's rating, says Moody's

Moody's said higher energy prices may create temporary budget pressures, but India's improving fiscal position and commitment to deficit reduction should help preserve its investment-grade status

Amid fiscal worries, govt puts PSU share sales on fast track to raise funds

As part of the stake-sale drive, an OFS in LIC is also likely to be launched "very soon"

Tamil Nadu debt nearly doubles to ₹10 trillion in five years: White paper

The TVK government's white paper said Tamil Nadu added Rs 4.87 trillion in debt over five years, while total liabilities, including guarantees and off-budget borrowings, reached Rs 13.8 trillion

18 states overshot fiscal deficit ceiling in FY25, shows CAG report

The CAG's review of state finances showed 18 states exceeded the 3 per cent fiscal deficit ceiling in FY25, while combined state liabilities continued to rise over the decade

Govt may allow wider fiscal deficit to 4.8% of GDP amid Iran war: Report

India ships in about 90 per cent of ​its oil and is one of the countries most-exposed to prolonged Iran war-related ‌disruptions to global energy supplies

Real cost of freebies is the erosion in quality of public spending

State debt and deficits do not capture the damage that doles inflict on the quality of public spending