Page 5 - Fiscal Policy

Fiscal deficit will come down once revenues start to grow: Tarun Bajaj

Union Revenue Secretary Tarun Bajaj on Friday said that the country's fiscal deficit will come down once revenues start to grow. Speaking at a webinar organised by the Bengal Chamber of Commerce and Industry (BCCI), Bajaj said that the government had adopted a loose fiscal policy on the backdrop of increased capital expenditure. "The fiscal deficit at present is 6.9 per cent of the GDP. The target for 2025-26 is to bring down to 4.5 per cent. If we continue to grow our revenues, the fiscal deficit can come down by 0.1 or 0.2 per cent", he said. Next year, the targeted fiscal deficit is 6.4 per cent, Bajaj said, adding that the government had the opportunity to lower it further. "But increased capital expenditure by almost 35 per cent had forced us to keep the fiscal level at that level", he added. The Revenue secretary said since last year, the Centre had started giving money to the states for making capital expenditure. Unless this is done, the last mile infrastructure will not

Economic Survey 2021-22: India's agile fiscal policy response

The changing emphasis on capital expenditure throughout this period reflects a quick responsive fiscal policy

Budget should maximise capex, set stage for MPC to control inflation

Budget 2022: ICRA expects a satus quo on the stance of the monetary policy as well as the reverse repo rate in the upcoming meeting of the Monetary Policy Committee.

The fiscal-monetary tango

The pandemic years called for policy reinforcement; the post-pandemic aftermath will call for policy prioritisation

Economists urge gradual consolidation, see fiscal deficit near 6% in FY23

They believe focus on reviving informal sector activity, particularly construction, is key to reviving GDP and jobs

China Q3 GDP growth hits 1-year low, raising heat on policymakers

China's economy grew at the slowest pace in a year in the third quarter

Tax mix and rates in a low interest environment will change

Low inflation means at its best zero inflation, which is good. But low interest rates don't mean a zero rate because that would be bad

Central banks need self-awareness

'The Reserve Bank of India has a lot of experience in trying (and failing) to guide fiscal policy', says the author

Time for out-of-the-box ideas, not fiscal correction, says Kerala FM

The statement from the minister assumes significance as Kerala, the only communist-ruled state in the country now, is known for its sweeping public welfare measures

India takes fiscal steps for better environmental results: FM at G20 meet

The third meeting of G20 Finance Ministers and Central Bank Governors is scheduled on July 9 and 10

Japan to abolish fiscal advisory panel as Covid adds to debt pile

Japan will abolish on Thursday a nearly two-decade-old panel consisting of academics and corporate executives that has offered long-term proposals on fixing the country's worsening finances

Best of BS Opinion: Accounting gains, games promoters play & more

Here are the best of Business Standard's opinion pieces for Friday

Accounting gains

RBI's higher surplus transfer has limits

Limitations of India's Covid response

Economic recovery will remain feeble till the pandemic is convincingly controlled

Fiscal vs monetary policy, under uncertainty

Heightened uncertainty from a second wave is likely to increase the relative efficacy of fiscal vis-a-vis monetary policy

Inflation debate hits emerging markets as Pimco backs economic rebound

Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that's being fueled by months of easy money and fiscal largess

Fiscal friction

Central govt should not leave everything to states

15th Finance Commission chairman N K Singh rues lack of fiscal institutions

Says states don't have fiscal flexibility for exigencies as Centre has

Fiscal steps taken by govt led to positive growth in Q3: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday said the fiscal measures taken by the government have resulted in positive growth of 0.4 per cent in the third quarter of the current financial year.

Fiscal doves in India: right and wrong

The idea that fiscal prudence and welfare of the less well-off are mutually exclusive is misplaced