Page 22 - Latest Updates on Fiscal Deficit
Fixing the GST
Fundamental improvements to the flawed structure needed
 "Fixing the GST")
Markets expect govt to borrow Rs 80,000 cr more to bridge fiscal deficit
RBI waiting for Budget numbers has surprised the bond market
 "Markets expect govt to borrow Rs 80,000 cr more to bridge fiscal deficit")
CII calls for GST cut, expansionary policy to pull economy out of slowdown
The Centre's fiscal deficit has crossed the Budget FY20 projection of Rs 7.04 trillion by October itself
 "CII calls for GST cut, expansionary policy to pull economy out of slowdown")
Rescuing India's PSU behemoths coming at the cost of fiscal restraint
Modi has received more than $28 billion from state firms since he came to power in 2014, by extracting dividends or getting PSUs to buy out the government's stake
 "Rescuing India's PSU behemoths coming at the cost of fiscal restraint")
S&P reaffirms India's sovereign rating at BBB- with a stable outlook
S&P's reiteration of India's rating and outlook is good news for the government as it fights multiple fires on the economic front
 "S&P reaffirms India's sovereign rating at BBB- with a stable outlook")
Markets at a high, economy at a low
The markets are clear 5 per cent growth is not the new normal
 "Markets at a high, economy at a low")
Fiscal deficit for April-Oct touches Rs 7.2 trillion, exceeds FY20 target
This was 102.4% of the full-year target, compared with 103.9% for the same period last year
 "Fiscal deficit for April-Oct touches Rs 7.2 trillion, exceeds FY20 target")
India's April-October fiscal deficit at 102.4% of full-year target
Net tax receipts in the April-October period was Rs 6.83 trillion, while total expenditure was Rs 16.55 trillion, the data showed
 "India's April-October fiscal deficit at 102.4% of full-year target")
How should the government revive demand?
What happens when, with government expenditure unchanged at Rs 65 trillion, the FM decides to reduce the tax rate, mobilise less revenue and let the deficit widen by Rs 1 trillion?
 "How should the government revive demand?")
Rising fiscal fears
A comprehensive review is needed
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
 "For states, balancing fiscal maths and capex will be challenging: CRISIL")
There is economic slowdown, but no signs of recession: FM Sitharaman
The finance minister touched upon the difficulties in meeting the fiscal deficit, and indirectly signalled a fiscal slippage for the year
 "There is economic slowdown, but no signs of recession: FM Sitharaman")
States' fiscal health falling apart over shortfalls in GST compensation
States are indeed facing shortage in cash flow to run the administration and finance their schemes, as well as capital spending
 "States' fiscal health falling apart over shortfalls in GST compensation")
No plan to cut spending on welfare schemes despite low revenues, says FM
The government has high expenditures on such welfare schemes which are aimed at poorer sections and agriculture
 "No plan to cut spending on welfare schemes despite low revenues, says FM")
To meet fiscal deficit target, govt may pare its IOC stake to under 51%
The government can sell as much as 26.4% its holding in Indian Oil -- valued at about Rs 330 billion -- and still retain indirect control
 "To meet fiscal deficit target, govt may pare its IOC stake to under 51%")
Slowdown: Indian GDP growth may slip further to 5% in FY20, says CLSA
Analysts at CLSA believe India's fiscal deficit may worsen to 4.3% in FY20
 "Slowdown: Indian GDP growth may slip further to 5% in FY20, says CLSA")
Why economists watered down India's July-Sept growth estimate to 4.2-4.7%
State Bank of India (SBI) joins global agencies such as the ADB, World Bank, OECD, RBI and the IMF in downgrading India's FY20 growth rates
 "Why economists watered down India's July-Sept growth estimate to 4.2-4.7%")
Economists estimate India's July-September GDP growth at 4.2-4.7%
Nomura chief economist Sonal Varma has put the Q2 growth at 4.2 per cent, similar to what SBI has estimated
 "Economists estimate India's July-September GDP growth at 4.2-4.7%")
Govt's expenditure and revenue figures for H1 don't tell the whole truth
The government's numbers on expenditure and receipts in the first half of the current year do not fully reveal the stress in its finances
 "Govt's expenditure and revenue figures for H1 don't tell the whole truth")
Fitch raises India's FY20 fiscal deficit to 3.6% of GDP on sluggish growth
Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY20 Union Budget due to weak GST collections
 "Fitch raises India's FY20 fiscal deficit to 3.6% of GDP on sluggish growth")
