Explained:About India’s fiscal deficit

News:Recently,former Economic Affairs secretary has claimed that the actual fiscal deficit for the last financial year and the current one is more than a full percentage point higher than the official data. Facts: What is Fiscal Deficit? Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure.… Continue reading Explained:About India’s fiscal deficit

Explained: Why state budgets matter

News:The Reserve Bank of India (RBI) has released its annual study of state-level budgets. Facts: Highlights of the study: The study has found that except during 2016-17,state governments have regularly met their fiscal deficit target of 3% of GDP.  However,most states ended up meeting the fiscal deficit target not by increasing their revenues but by… Continue reading Explained: Why state budgets matter

Fiscal deficit crosses 77% of annual target in July

According to data released by the Controller General of Accounts(CGA), India’s fiscal deficit has reached 77% of the annual target for 2019-20 in July. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues. In Union Budget 2019,India has set… Continue reading Fiscal deficit crosses 77% of annual target in July

Why lower fiscal deficit isn’t always good news

According to the data,there is growing concern about the slowdown in India’s economic growth.Recently,RBI had also cut repo rates by 35 basis points, which was the sharpest cut in nine years. In macroeconomy,there are two components.One is the structural or the permanent component which is largely determined in the long term by factors such as… Continue reading Why lower fiscal deficit isn’t always good news

Budget Briefs: Fiscal deficit target revised downwards to 3.3%

Finance Minister has announced the fiscal deficit target for 2019-20 at 3.3% of GDP from 3.4% set in the Interim Budget presented on February 1, 2019. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues. The main reason for… Continue reading Budget Briefs: Fiscal deficit target revised downwards to 3.3%

SC to hear petition to end write-offs

A petition has been filed in the Supreme Court to restrain banks from writing off non-performing assets(NPAs) and governments from waiving off farm loans. The petitioner has said that Supreme Court should (a)restrain banks from writing-off of NPAs so that exact financial conditions of the banks can be shown(b) The Centre and state governments should… Continue reading SC to hear petition to end write-offs

States overall deficit set to decline in FY20: Economists

State Bank of India(SBI) Economists has said that states have managed to contain the fiscal deficit at the aggregate level for FY20.All the states have projected a decline in fiscal deficit next year,except Odisha,Assam and Uttarakhand.Despite the increase,these three states are keeping the fiscal deficit below 3%. The factors that helped in reducing fiscal deficit… Continue reading States overall deficit set to decline in FY20: Economists

Fiscal deficit in Jan. at 121.5% of full-year target

According to the data released by the Controller General of Accounts, Centre’s fiscal deficit touched 121.5 per cent(7.70 lakh crore) of the budgeted target of Rs 6.34 lakh crore for 2018-19 due to lower revenue collection. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their… Continue reading Fiscal deficit in Jan. at 121.5% of full-year target

Interim Budget 2019: Centre’s fiscal deficit target goes for a toss

The Government have budgeted the fiscal deficit for 2019-20 at 3.4% of the Gross Domestic Product which is slightly higher than the target of 3.3% of GDP that the government had set itself last year. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses… Continue reading Interim Budget 2019: Centre’s fiscal deficit target goes for a toss