Page 13 - Fiscal Deficit

Interim Budget indicates the way forward

On the external sector, the Finance Minister said that geopolitically, global affairs are becoming more complex and challenging with wars and conflicts

Fiscal deficit was 4.5% in UPA's terminal year, says P Chidambaram

Noting that much has been made of the fiscal correction made by the government, senior Congress leader P Chidambaram on Sunday said the fiscal deficit was 4.5 per cent in the UPA's terminal year 2013-14 while it is 5.8 per cent under the NDA in 2023-24. The former finance minister asserted that there is no place for a "bullhorn" in economics. In a post on X, Chidambaram said much has been made of the fiscal correction made by the NDA government and the fiscal deficit of 5.8 per cent in 2023-24. "Since memories are short, I may jog the memories of the learned commentators. Under the UPA, the Fiscal Deficit in 2007-08 was 2.5 per cent. In the terminal year of UPA (2013-14) the Fiscal Deficit was 4.5 per cent. In the terminal year of NDA (2023-24) the Fiscal Deficit is 5.8 per cent," he said. There will be ups and downs in any regime, the Congress leader noted. "If the NDA points to the pandemic years (2020-21 & 2021-22), the UPA can point to the years of the International Financial

Tax buoyancy cannot continue year after year, says DEA secy Ajay Seth

Economic Affairs Secretary Ajay Seth spoke on the government's thinking behind the major budget projections and the fiscal math

It's not priority of govt to monitor consumption: Finance secretary

He says why the Budget numbers are realistic and speaks of the evolving approach of the government towards disinvestment, welfare schemes, and capital expenditure

Fiscal deficit target of 5.1% ambitious but achievable: Finance secretary

Finance Secretary T V Somanathan has said the government's resolve to bring down the fiscal deficit by 70 basis points to 5.1 per cent in 2024-25 is ambitious but achievable in view of the tax buoyancy and expenditure management. Finance Minister Nirmala Sitharaman in the interim Budget presented on Thursday refrained from announcing any populist measures but significantly trimmed the fiscal deficit to 5.1 per cent of the Gross Domestic Product (GDP) next fiscal and 4.5 per cent in FY26. "So it is ambitious but it is also realistic. There are three pillars on which this is based. One is we have assumed growth in tax revenue about 11.5 per cent. I think that's a very realistic assumption," Somanathan told PTI Videos in an interview. Besides, he said, the government has projected a slight increase in non-tax revenue from a high base during the current financial year. On the expenditure side, he said, "Capex has increased 11.1 per cent... the revenue expenditure we believe is ...

Budget focused on economic resilience, creates opportunities for all

It carefully allocates public resources and commits to reduce the country's fiscal debt

Budget focused on economic resilience, creates opportunities for all

It carefully allocates public resources and commits to reduce the country's fiscal debt

Deficit reduction will stabilise debt-to-GDP ratio over medium term: Fitch

Fitch Ratings on Friday said the slightly faster pace of fiscal deficit reduction does not significantly change India's sovereign credit profile but the government's emphasis on deficit reduction will help to stabilise the debt-to-GDP ratio over the medium term. In a post budget commentary, Fitch Ratings Director, Sovereign Ratings, Jeremy Zook said over the next five years, India's government debt-to-GDP ratio would be broadly stable at just above 80 per cent of GDP. This is based on a continued path of gradual deficit reduction, as well as robust nominal growth of around 10.5 per cent of GDP. In the interim Budget 2024-25, presented in Parliament on Thursday, the government revised lower its current year fiscal deficit to 5.8 per cent from 5.9 per cent budgeted earlier. The deficit, which is the gap between the government's revenue and expenditure, will come down to 5.1 per cent in 2024-25 and further to 4.5 per cent by 2025-26. Fitch said this demonstrates a firm desire to adher

Interim Budget: Infra focus, fiscal prudence are positives for street

While overall capex has increased, some analysts had expected higher outlays for road, defence and railways

FM Sitharaman's Interim Budget is high on confidence, not on populism

FM overperforms on deficit, stays away from sops, pushes feel-good factor by ending old tax disputes, lists out decade of development

Interim Budget 2024-25: A confident and optimistic report

In a Budget celebrating the achievements in the last decade, there are few announcements with any fiscal magnitude attached

Interim Budget 2024-25: Banks likely to see heavy trading gains in Q4

The yield on the benchmark 10-year government bond declined by 12 basis points (bps) in 2024 from 7.17 per cent to 7.05 per cent on February 1, 2024

Prudence first

Interim Budget sticks to fiscal glide path

Interim Budget 2024 highlights: Capex from govt will continue, says FM

Union Budget 2024 LIVE updates: FM Sitharaman in her Interim Budget speech stated the Centre is working towards making India 'viksit' by 2047. Catch the latest updates here

Interim Budget: Improved fiscal resilience amid modest tax buoyancy

The Interim Budget had assumed nominal GDP growth of 10.5 per cent of GDP, but First Advance Estimates placed it at 8.9 per cent

On path to achieving fiscal deficit target of 4.5% by FY26: FM Sitharaman

Interim Budget: Revenue Secretary Sanjay Malhotra said that the removal of tax old tax disputes is likely to cost the Centre around Rs 3,500 crore

FM delivers a prudent, pragmatic and progressive budget, says Sundeep Sikka

From an equity market perspective, some of the positives appear to be considered in valuations and therefore return expectations from near term perspective should be moderate

No adverse policy changes in the interim budget was a boon: Rahul Arora

The focus on fiscal consolidation led by moderation in government capex aims to reduce the risk of the government crowding out the private sector

Strong emphasis on fiscal consolidation and public investment: Sujan Hajra

Given the robust tax buoyancy seen in recent years and the govt's modest expenditure plans, it is conceivable that the actual fiscal outcomes next year may surpass the budget's projections

Govt to borrow Rs 14.13 trn from market in FY25 to meet revenue shortfall

Finance Minister Nirmala Sitharaman on Thursday proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year starting on April 1. This is lower than last year's gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever. The lower borrowing estimate for 2024-25 is on account of growing tax revenue and the government's resolve to meet its fiscal consolidation roadmap. About net borrowing estimate, Sitharaman while presenting the interim Budget for 2024-25 said it would be Rs 11.75 lakh crore during the next financial year. As a result, the government would make repayment of Rs 2,37,818 crore during the year. "The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 and Rs 11.75 lakh crore respectively. Both will be less than that in 2023-24. Now that the private investments are happening at scale, the lower borrowings by the Central Government will facilitate lar