Page 4 - Latest Updates on Fiscal Policy
Covid-19: RBI slashes reverse repo rate by 25 bps, no change in repo rate
Earlier, the RBI had reduced the repo rate to a 15-year low of 4.40 per cent by announcing a steep cut of 75 basis points on March 27, only two days after the national lockdown was imposed
 "Covid-19: RBI slashes reverse repo rate by 25 bps, no change in repo rate")
Covid-19: Ease fiscal policy, let states borrow from RBI, says Kerala FM
On Tuesday, Kerala had to offer an interest rate of 8.96 per cent for Rs 6,000 crore market borrowing for state development loan for a 15-year period
 "Covid-19: Ease fiscal policy, let states borrow from RBI, says Kerala FM")
Questions about borrowing
The funding need can change materially
 "Questions about borrowing")
Now what?
Once the lockdown is lifted, we will need the mother of all fiscal and monetary policy support to sustain the economy
 "Now what?")
AGR dues paid by telcos to reflect in FY20 revenue receipts: Report
Officials said the amount was not much to have any bearing on the fiscal position
 "AGR dues paid by telcos to reflect in FY20 revenue receipts: Report")
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
 "Budget disappointing; but fiscal, taxation measures welcome: EAC member")
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
 "Budget strikes right balance between growth push and fiscal discipline: CEA")
Stock markets cannot expect the moon every time: CBDT chairman P C Mody
A three per cent rise is definitely achievable
 "Stock markets cannot expect the moon every time: CBDT chairman P C Mody")
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
 "A prudent Budget that is unlikely to revive faltering economic growth")
Budget consistent with fiscal strategy; aimed at boosting demand
The fiscal multiplied impact of higher government consumption spending is coupled with signal to household sector to spend more
 "Budget consistent with fiscal strategy; aimed at boosting demand")
Budget session LIVE updates: Congress protests against Anurag Thakur in LS
Budget 2020 Live: Finance Minister Nirmala Sitharaman today presented the annual Union Budget 2020-21 in Parliament. Follow Business Standard for LIVE updates
 "Budget session LIVE updates: Congress protests against Anurag Thakur in LS")
Revival in sight: Economic Survey pegs FY21 GDP growth at 6-6.5%
Fiscal targets may have to be relaxed for the current year
 "Revival in sight: Economic Survey pegs FY21 GDP growth at 6-6.5%")
Calibrating the policy mix
The right fiscal-monetary-external balance must be achieved to nurture and harness a nascent recovery
 "Calibrating the policy mix")
What can macro policy do?
Long-term structural reforms are required, such as a uniform GST and direct tax rates
 "What can macro policy do?")
Budgetary over-reach: There is a price for trying to do too much in Budgets
The larger economy suffers more than the central govt, as New Delhi is allowed to get away with behaving arbitrarily and then hiding the reality behind bogus numbers, writes T N Ninan
BJP wants Sitharaman to give rural, infrastructure push in upcoming Budget
According to party, meeting fiscal deficit not the real economic issue for the government
 "BJP wants Sitharaman to give rural, infrastructure push in upcoming Budget")
Glitter versus gold in policy-making
Three years of slowing growth hold two important lessons for the Budget
 "Glitter versus gold in policy-making")
Why a growth rate falling below 5% is a clear and present danger for India
At 5 per cent, GDP growth in the current year would be an 11-year low. Worse, this will also mark a deceleration for a third straight year, writes A K Bhattacharya
 "Why a growth rate falling below 5% is a clear and present danger for India")
Govt must batten down on expenditure, play long innings to fix economy
NRI and foreign economists should be ignored as completely as commentators are ignored by top class batsmen, writes TCA Srinivasa Raghavan.
 "Govt must batten down on expenditure, play long innings to fix economy")
