Page 36 - Fiscal Deficit

Post stimulus, fiscal deficit of Centre, states to be at 12% of GDP: Report

In the case of states, the fiscal gap will rise by 200 bps after the Centre hiked the borrowing limit of states to 5 per cent of GSDP on Sunday

Govt's fiscal cost could be less than 11% of total economic package

Not all of this amount will necessarily be borne in fiscal year 2020-21

Higher borrowing can see FY21 combined fiscal deficit hit 12%: Economists

Net borrowing ceiling for 2020-21 was earlier pegged at Rs 6.41 trillion (3 per cent of gross state domestic product), and the states have thus far borrowed merely 14 per cent of this authorised limit

Fiscal stimulus by FM is mostly credit oriented, says Subhash Chandra Garg

He said that the fiscal stimulus, by its very nature, is additional fiscal burden on the public finances

Expect a stimulus, even at the cost of high fiscal deficit: Venu Srinivasan

The government has given loans and ensured that companies, SMEs in particular, dont sink due to the crisis

With Rs 20-trn package, fiscal deficit to balloon to 7.9% in FY21: Report

"We estimate a 4.5% direct impact on fiscal deficit purely because of revenue shortfall / automatic fiscal stabilizer and a 0.9% indirect effect because of GDP change," the SBI report says

FM's Day 2 package: Govt's immediate fiscal cost will be close to Rs 10K cr

The direct spending by the centre, on Thursday's announcements will include Rs 3,500 crore that the centre will spend on providing free foodgrains to 80 million migrants

Rupee drops by 19p to 1-wk low against dollar on fiscal deficit concerns

Domestic stocks advanced in early trade which supported the rupee. The key indices Sensex and Nifty, however, closed marginally down due to sell-off in financial counters

Fiscal prudence still matters

Govt will need to spend more, but should credibly commit through institutional reform to future transparency and prudence

Combined Centre and state fiscal deficit may go up to 14%, says Subbarao

The former RBI governor also says that the Centre's current fiscal stimulus is not sufficient

Putting an entire district in red zone makes no sense: Amarinder Singh

Centre-state relations during the battle against Covid-19 have caused cooperative federalism to come under massive stress, says the Punjab CM

Pakistan's fiscal deficit to surge, tax revenue to miss target in 2020: FM

Fear of an economic meltdown is said to be the main reason behind ending the shutdown at a time when the country's curve, or rate of infections, is edging up sharply

Covid-19 impact: State govts likely to raise more money using bonds

According to the Reserve Bank of India (RBI) data, state governments' gross market borrowings stood at Rs 6.08 trillion in 2019-20, up from Rs 4.78 trillion in 2018-19.

Additional borrowing to widen fiscal deficit, but help govt perk up economy

He did not think that the move will crowd out borrowings of the private sector, saying demand of the government and the private sector are not contradictory in these circumstances

Covid-19: US deficit could quadruple to $3.7 trillion; GDP to fall 40%

The CBO report illustrated the fiscal pressures lawmakers in Congress face as they prepare to craft new legislation to respond to the pandemic

Centre should use fiscal powers to ease state constraints: Yamini Aiyar

She says India needs to avoid another nationwide lockdown

Monetisation of govt's fiscal deficit by RBI is tricky, say economists

The RBI is kept out of directly monetising the government's fiscal deficit because it may give rise to unproductive spendings.

RBI unlikely to monetise Centre's fiscal deficit in first half of FY21

This, officials said, is because the bond market has factored in the Rs 4.88-trillion gross borrowing for April-September 2020

Monetising part of fiscal deficit inevitable: ex-RBI governors and experts

Monetising deficit means that the RBI purchases govt bonds directly in the primary market and finances this debt by printing more currency

Covid-19: India must ease fiscal stance amid health emergency, says IMF

Once the current economic situation improves, a more ambitious, credible medium-term fiscal consolidation path is needed to bring debt and interest expenditure down, the report said