Page 8 - Fiscal Policy

Now what?

Once the lockdown is lifted, we will need the mother of all fiscal and monetary policy support to sustain the economy

Budget disappointing; but fiscal, taxation measures welcome: EAC member

India's GDP growth is expected to slip to a decadal low of 5 per cent this fiscal, pressured by domestic factors like drop in consumption, as well as global issues

Why fiscal rules should be revisited

According to the revised FRBM rules, as amended by the Finance Act, 2018, the central government debt stock should not exceed 40 per cent of GDP by the end of financial year 2024-25

Budget strikes right balance between growth push and fiscal discipline: CEA

So, at least for me, the way I would look at it is that before the Budget, we were actually looking at 3.3 per cent for this year and 3 per cent for next year

Stock markets cannot expect the moon every time: CBDT chairman P C Mody

A three per cent rise is definitely achievable

A prudent Budget that is unlikely to revive faltering economic growth

Fiscal prudence has been given priority over fiscal stimulus which will contain the growth of debt liabilities, but it will not provide the strong public expenditure push required for reviving growth

Revival in sight: Economic Survey pegs FY21 GDP growth at 6-6.5%

Fiscal targets may have to be relaxed for the current year

Calibrating the policy mix

The right fiscal-monetary-external balance must be achieved to nurture and harness a nascent recovery

What can macro policy do?

Long-term structural reforms are required, such as a uniform GST and direct tax rates

Ex-CEA Subramanian against tax cuts, says no space for fiscal expansion

Subramanian further said that he thinks personal income tax cuts motivated by desired increased consumption are highly inequitable

Statsguru: Ball in the fiscal court as RBI keeps lending rates unchanged

The MPC underlined the rising consumer price inflation as one of the reasons

For states, balancing fiscal maths and capex will be challenging: CRISIL

The rating agency - in its Infrastructure Yearbook 2019, released on Tuesday - said most of the sub-sectors in infrastructure have shown stress this year, compared to the previous year

Deploy stimulus to revive economy or face stagnation, caution analysts

The central bank has already chopped 135 basis points off its key lending rate, but this has failed to spur demand

Come clean on fisc

Govt must not conceal how slowdown is impacting revenue

Fiscal policy and the growth slowdown

The question then is: On what should government spend this extra borrowing?

Delink the deficits: Linking revenue and fiscal deficits will lead nowhere

Revenue deficit comprises political payouts that are impossible to reduce in any significant measure. Minimising political risk means increasing revenue deficit

Walking a tightrope

Is a low-inflation, low-growth environment the new normal?

India has limited room to ease fiscal policy due to high debt: Fitch

It said GDP (gross domestic product) growth is likely to rebound to 7.1 per cent next year

Why India could miss fiscal deficit target for the current financial year

By the end of 2019, govt could be forced to raise the fiscal deficit target to 3.5% of GDP from the current target of 3.3% as pressure for more stimulus mount

A next generation fiscal framework

It may be time to set up a Centre-state council for expenditure, and to re-anchor bond markets