Page 16 - Latest Updates on Fiscal Deficit
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
 "Monetising part of fiscal deficit inevitable: ex-RBI governors and experts")
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
 "Covid-19: India must ease fiscal stance amid health emergency, says IMF")
PM hints at lockdown extension till Apr 30; industrial activity may begin
The motto of the government earlier was "jaan hai to jahaan hai", but now it is "jaan bhi jahaan bhi", the PM said
 "PM hints at lockdown extension till Apr 30; industrial activity may begin")
Creating fiscal space for the states
In the second part of a series, the authors say the current uncertainties require room for discretion to serve as a necessary handmaiden of rules that cannot alone cater to all contingencies
 "Creating fiscal space for the states")
Establish fiscal council to scale up spending
India will have to address the big fiscal prudence challenge, which is not captured by the fiscal deficit/GDP metric
Govt unlikely to grant any package for industry to pay workers' salaries
"The government lacks the fiscal space. It will not be feasible to give grants to the industry to take care of its wage bills," sources said.
 "Govt unlikely to grant any package for industry to pay workers' salaries")
Little option for govt other than amending FRBM Act to widen fiscal deficit
It has already exhausted the escape clause, which allows for a maximum deviation of 0.5% from consolidation road map
 "Little option for govt other than amending FRBM Act to widen fiscal deficit")
States can borrow Rs 3.2 trillion in April-Dec after discussions with RBI
The amount that the states have been given permission to raise through open market borrowings is a little more than Rs 3.2 trillion.
 "States can borrow Rs 3.2 trillion in April-Dec after discussions with RBI")
Covid-19 and Indian economy: Do please light your lamps as lights go out
After the health crisis, India's fiscal stress will increase as revenue falls and crisis-driven expenditure goes up; some key numbers may get worse than in the 2008 financial crisis, writes T N Ninan
 "Covid-19 and Indian economy: Do please light your lamps as lights go out")
Fiscal deficit for April-February touches 135.2% of Revised Estimates
The data released by the Controller General of Accounts on Tuesday shows that to meet the RE for 2019-20, the central government will have to garner Rs 5.03 trillion in total revenues in March
 "Fiscal deficit for April-February touches 135.2% of Revised Estimates")
Handling of lockdown brings back DeMo memories: Economist Jean Dreze
Dreze was part of academicians and activists who recently wrote to the Centre about the situation of the migrant workers
 "Handling of lockdown brings back DeMo memories: Economist Jean Dreze")
Measures announced by RBI are enough for now but what next, Mr Das?
No one cares about fiscal deficit now. Or for that matter, inflation. The focus is on growth and growth alone
 "Measures announced by RBI are enough for now but what next, Mr Das?")
Experts peg India's Covid-19 lockdown cost at $120 bn, call for relief plan
Domestic brokerage Emkay congratulated policymakers for acting earlier than other countries, but rued that there is not much to cushion the economic impact
 "Experts peg India's Covid-19 lockdown cost at $120 bn, call for relief plan")
The other casualty of COVID-19: Union Budget for 2020-21
A major alteration in the overall numbers of the Budget is almost inevitable because of the coronavirus pandemic.
 "The other casualty of COVID-19: Union Budget for 2020-21")
Best of BS Opinion: Financial market stress, policy after COVID-19 and more
Here's a selection of Business Standard Opinion pieces for the day
 "Best of BS Opinion: Financial market stress, policy after COVID-19 and more")
Chhattisgarh's subsidy burden up by 41%, CM presents Rs 95,650 cr budget
Besides loan waivers, the state government had doled out a number of subsidy schemes last year. The bonus to farmers, reducing the electricity bill to half were a few
 "Chhattisgarh's subsidy burden up by 41%, CM presents Rs 95,650 cr budget")
States slashed capital outlay by 14% to plug fiscal deficit: Report
States which ended up spending significantly less than what they budgeted include Jammu & Kashmir (51 per cent), Assam (51 per cent) and Goa (50 per cent)
 "States slashed capital outlay by 14% to plug fiscal deficit: Report")
Rupee could come under pressure
High fiscal deficit and poor export performance are two possible triggers
 "Rupee could come under pressure")
April-January fiscal deficit hits 128.5% of FY20 revised estimates
As a percentage of the Budget estimates of Rs 7.04 trillion, the fiscal deficit was a staggering 140 per cent
 "April-January fiscal deficit hits 128.5% of FY20 revised estimates")
Fiscal deficit touches 128.5% of budget estimate at January-end
The deficit during the same period during 2018-19 was 121.5 per cent of that year's Revised Budget Estimate (RE)
 "Fiscal deficit touches 128.5% of budget estimate at January-end")
