Page 12 - Latest Updates on Fiscal Deficit
Govt considers selling 25% stake in LIC to plug widening budget gap: Report
The government plans to amend the act of parliament under which the state-run LIC was set up to prepare for the sale, the people said, asking not to be identified as the discussions were private
 "Govt considers selling 25% stake in LIC to plug widening budget gap: Report")
Govt's total liabilities rise to Rs 101.3 trn in Q1: Finmin report
Public debt accounted for 91.1 per cent of total outstanding liabilities at end-June 2020, the quarterly report on public debt management released on Friday said
 "Govt's total liabilities rise to Rs 101.3 trn in Q1: Finmin report")
Covid-19 fallout: Fiscal deficit may rise to Rs 14.6 trillion in FY21
Fiscal deficit is expected to balloon to Rs 14.6 trillion or 7.6% of GDP in FY21 as economic disruptions are set for a long haul due to Covid-19 pandemic, brokerages analysing the deficit numbers said
 "Covid-19 fallout: Fiscal deficit may rise to Rs 14.6 trillion in FY21")
Govt should stop looking at telecom spectrum as just a source of revenue
A far-sighted government with the national interest in mind would determine that sectoral health, not its own revenue, is the major priority at this moment
 "Govt should stop looking at telecom spectrum as just a source of revenue")
Centre, states may welcome N K Singh's plan for fiscal deficit range
The 15th Finance Commission Chairman had pushed for a range instead of a fixed number, saying it is more realistic and will lead to less accounting engineering
 "Centre, states may welcome N K Singh's plan for fiscal deficit range")
Fiscal deficit may hit 8% of FY21 GDP on additional govt borrowing: Experts
The development comes at a time when the economy is limping back to normalcy after a stringent lockdown that lasted over two months
 "Fiscal deficit may hit 8% of FY21 GDP on additional govt borrowing: Experts")
Gulf nation's fiscal diet risks deeper pain amid oil price uncertainty
Brent prices have rebounded since plunging to a more than 20-year low in April, but at just over $40 per barrel, they are significantly below what most Gulf states would need to balance their budgets
 "Gulf nation's fiscal diet risks deeper pain amid oil price uncertainty")
In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA
The borrowing alternative offered by the Centre to make up for the shortfall in the promised compensation will lead to the states' fiscal deficits widening to 4.25 - 5.52 per cent
 "In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA")
Statsguru: 24% GDP contraction and enormity of Centre's fiscal challenge
If annual expenditure is kept unchanged from the budgeted Rs 30 trillion, a worst-case scenario can push Centre's fiscal deficit to 8.1 per cent of GDP
 "Statsguru: 24% GDP contraction and enormity of Centre's fiscal challenge")
Considering fiscal deficit range instead of number, says N K Singh
Singh said the 15th Finance Commission had not sought any extension and will finish its report for 2021-22 to 2025-26 by October 31
 "Considering fiscal deficit range instead of number, says N K Singh")
15th FC panel suggests giving range for fiscal deficits for Centre, states
Singh said the commission did not brush aside the suggestion, however, a final decision on providing a range as fiscal deficit targets is yet to be taken
 "15th FC panel suggests giving range for fiscal deficits for Centre, states")
Sensex up 273 pts; Bharti Airtel up 7%, Voda Idea dips 13% post AGR verdict
All that happened in the markets today
 "Sensex up 273 pts; Bharti Airtel up 7%, Voda Idea dips 13% post AGR verdict")
Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more
Here are the top business headlines on Tuesday
 "Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more")
At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates
With GDP for April-June also in, it can be calculated that fiscal deficit for Q1FY21 was 17.4% of nominal GDP. FM Sitharaman had pegged fiscal deficit for the year at 3.5% of GDP in 2020-21 Budget
 "At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates")
India's fiscal deficit crosses full-year budgeted target in four months
Net tax receipts were Rs 2.03 trillion, while total expenditure was Rs 10.5 trillion
 "India's fiscal deficit crosses full-year budgeted target in four months")
Fiscal deficit to touch 7% in FY21 as Covid hits revenue: Brickwork Ratings
Revenue from income taxes (personal income tax and corporate income taxes) was lower by 30.5 per cent, and the GST by almost 34 per cent during the period
Rise in fiscal deficit likely to impact construction sector this yr: Report
The agency had recently noted that the fiscal deficit of central and state governments will come at 12.1 per cent with the states contributing 4.5 per cent of it
 "Rise in fiscal deficit likely to impact construction sector this yr: Report")
RBI's payout unlikely to plug the huge govt revenue hole created by Covid
Last year the RBI's board approved a record payment of Rs 1.76 trillion ($23.5 billion) to the government, which included Rs 1.23 trillion as dividend and Rs 526.4 billion from its surplus capital
 "RBI's payout unlikely to plug the huge govt revenue hole created by Covid")
Rollback time: What didn't work for govts earlier will not work even now
Long discarded policies like deficit monetisation, loan restructuring, higher tariffs and import licensing had not yielded great results even the first time around, points out T N Ninan
It is not too late, but it soon will be
The fragility of central government finances is partly legacy, part refusal to acknowledge and address the problem due to the lack of strategic vision and poor institutional capability
