Fiscal deficit target of 5.1 per cent ambitious but achievable: Finance Secretary
Finance Secretary T V Somanathan believes that the government's target of reducing the fiscal deficit to 5.1% of GDP in 2024-25 is ambitious but achievable. This is based on the assumption of growth in tax revenue of 11.5%, an increase in non-tax revenue, and a nominal GDP growth rate of 10.5%. Somanathan also mentioned the control over avoidable expenditure and a balanced increase in capital expenditure as factors contributing to the target. He dismissed criticisms on capital expenditure, stating that the increase is realistic and necessary for the economy. Key Points
Economic TimesBudget 2024: 1111111, the attention-catching number that stands out
Nirmala Sitharaman's 'no big bang' budget holds back expected welfare spending and sops for voters. The enigmatic numbers 1111111 and 11.11 are related to capital expenditure. Sitharaman proposes to raise the capital expenditure target by 11.11% to Rs. 11.11 lakh crore for the next fiscal year. The hike in the interim budget is significant but not as dramatic as in previous budgets. Key Points
Economic TimesBudget Basics: What does the govt spend on? The politics and economy of expenditure
The budget will include both capital and revenue expenditures, impacting the economy and potentially favoring certain regions or social groups. Capital expenditure is crucial for economic growth, while welfare schemes can support consumption and boost sectors. However, the government may need to rein in capital expenditure due to the pandemic's impact on the fiscal deficit. Key Points
Economic TimesIs Gehlot destroying Rajasthan’s economy through freebies? Data shows this isn’t the case
Rajasthan’s finances show its revenue is relatively strong & it is becoming more independent of the Centre. Prioritising social sector over capex is not necessarily bad, say experts. Key Points
ThePrintCentre to extend cash control exemption for capex to Q2
In April 2023, the Centre’s fiscal deficit was 78% higher on year at Rs 1.3 trillion or 7.5% of the FY24 BE, from Rs 0.7 trillion in the first month of FY23. Key Points
Financialexpress
Key budget numbers for FY23 in line with revised estimates
In FY23RE, the net (post-devolution) tax revenue target was raised by 8% to Rs 20.87 trillion. Key Points
FinancialexpressIndia’s inflation data overlooks full impact of rising prices. ‘Average Indian’ is outdated
Food has an outsized weightage in Consumer Price Index, but education and health too little. This is because CPI is based on spending patterns of 'average Indian' from 12 years ago. Key Points
ThePrintChina slowdown won't have much impact on India, says Finance Secretary TV Somanathan
India's finance secretary, T.V. Somanathan, has said that the slowing Chinese economy is unlikely to have much of an impact on India's economy, and the government will continue with its capital expenditure push. The Chinese economy is suffering after retail sales, industrial output and investment data came in much lower than expected. Five major brokerages have now cut China's growth forecast for this year. Key Points
Economic TimesCoal India capex rises 7.6% on year so far in FY24
Coal India Ltds capital expenditure rose by 7.6% on year in the eight months of the ongoing financial year to Rs 10,492 Crores. The target of the company for the fiscal is Rs 16,500 crore. Capex on acquisition of land and related rehabilitation followed at Rs 2,486 crore accounting for almost a quarter of the expenditure during the period. Key Points
Economic TimesFood makes up less than half of an Indian household's monthly bill, a first since Independence
A working paper by the EAC-PM has found that monthly per capita expenditure is up across rural and urban India. But food is occupying a smaller share of this spending than before. Key Points
ThePrintCentral public sector enterprises achieved 50% capex spending in first half of 2023-24
New Delhi [India], December 20 (ANI): Capital expenditure by central public sector enterprises are on track to meet its target for the year 2023-24, the Ministry of Finance said on Wednesday. During April-September, the first half of the fiscal year, 52 per cent of the Budgeted target has been achieved with a spending of 3.79 […] Key Points
ThePrintIndia's investment rate to reach 36.2% by 2026: Morgan Stanley
India Business News: India's investment rate is set to increase to 36.2% of GDP by 2026-27, up from 32.2% in 2022-23. The government's focus on capital spending post-pande Key Points
Times Of IndiaBudget 2024: A deeper cut to the fiscal deficit throws up positive surprise
In terms of priorities, the interim budget has continued its focus on raising capital expenditure - the type of expenditure which creates assets (think railways, roads, housing) - at a faster pace compared to revenue expenditure (which is essentially spent on salaries, interest payments, pensions, etc). This strategy has been adopted since the pandemic as the government introduced supply-side reforms to support growth by building economic infrastructure. Since FY21, capex has grown close to 30% on average per annum, compared to 11% growth in revenue expenditure. Key Points
Economic TimesDivestment not a tool for fiscal consolidation, says Finance Secretary TV Somanathan
The government is confident of meeting the targets in the interim budget presented on Thursday. Finance Secretary TV Somanathan stated that the government capital expenditure continues to be high and expressed confidence in achieving the 5.1% fiscal deficit target in 2024-2025, with estimated revenue growth of 11.5% against GDP growth of 10.5%. The nature of public expenditure is unpredictable, but barring unforeseen events, the aggregate public expenditure is projected to remain unchanged, he added. Key Points
Economic TimesIndia's fiscal deficit at Rs 6.4 lakh cr in April-Aug, 36% of full-year target: CGA
In absolute terms, the fiscal deficit — the gap between expenditure and revenue — was Rs 6.42 lakh crore as of August-end, according to the data released by the Controller General of Accounts (CGA). Key Points
Business Today7.7% H1 growth leaves 'sceptics gasping and woefully behind curve': RBI article
Mumbai, Dec 20 (PTI) GDP growth of 7.7 per cent in the first half of this fiscal has “left sceptics gasping and woefully behind the curve”, an RBI article said on Wednesday. It also stressed the buildup in the growth momentum is likely to be sustained. The article on the state of the economy published […] Key Points
ThePrintBJP spent nearly double of Congress on Himachal Pradesh election campaign
The parties’ expenditure reports for the 2022 polls shows BJP spent Rs.49.68 crore, Congress spent Rs.27.01 crore Key Points
The Indian ExpressNo record of office expenses for Justice Rohini Commission on OBC quota for 2 years: RTI
The government has no records of office expenditure incurred for the Justice G. Rohini Commission for the sub-categorisation of Other Backward Classes (OBCs) since September 2021, according to replies to Right to Information requests filed by The Hindu. Key Points
The HinduNo record of office expenses for Justice Rohini Commission since Sept. 2021
The government has no records of office expenditure incurred for the Justice G. Rohini Commission for the sub-categorisation of Other Backward Classes (OBCs) since September 2021, according to replies to Right to Information requests filed by The Hindu. Key Points
The HinduParliamentary panels unhappy with funding delays by ministries
Factor this, the school education department was provided an outlay of '37,383.36 cr in BE 2022-23. However, at RE stage, it was reduced to '32,151.66 cr. Of this, the department was able to utilize only '19,926.23 crores till January 31, 2023, a parliamentary committee report notes. Key Points
Economic Times
Interim budget continues govt's focus on capex, allocates more for MNREGA to ease rural distress
Capital expenditure for next FY is achievable but could be challenging given this year's under-achievement. Moreover, rise of interest payments doesn't bode well for quality of expenditure. Key Points
ThePrintDirect healthcare costs, not covered under insurance, fall to 39.4%
India's out-of-pocket health expenditure has decreased, dropping from 64.2% in 2013-14 to 39.4% in 2021-22, according to the National Health Accounts Estimates. Key Points
India TodayPrivate capital expenditure to pick up in coming years: MPC member Jayanth R Varma
RBI Monetary Policy Committee member Jayanth R Varma predicts that capacity utilization is increasing and private capital expenditure will pick up in the coming years. He believes that the government has borne the burden of investment, while private capital expenditure has been muted. Varma also believes that large public sector infrastructure investments have the potential to crowd-in private sector investments. Key Points
Economic TimesFinMin asks ministries/departments to follow guidelines on issuance of mobiles, laptops to officers
The finance ministry has directed various departments to follow guidelines for issuing mobiles, laptops, and similar devices to eligible officers of the Government of India for official work. The Department of expenditure issued guidelines in July, allowing central government officers to receive devices costing up to Rs 1.3 lakh, which can be retained for personal use after 4 years. Key Points
Economic TimesWithout growth or welfare, Budget 2023-24 is one that curtails social spending
One expects welfare spending to spike before elections. But this Budget goes against the grain. Key Points
The Hindu
Express View on delay of Consumption expenditure Surveys, census: Let data flow
Accurate and timely data forms the bedrock of policy making. Measures need to be taken to strengthen statistical system, safeguard its independence. Key Points
The Indian ExpressGovt health spends climb to 1.84% of GDP as out-of-pocket spending dips, show govt estimates for FY22
The latest National Health Accounts estimates reveal that share of out-of-pocket expenditure in total health expenditure dropped from 64.2 percent in 2013-14 to 39.4 percent in 2021-22. Key Points
ThePrintAre Bharat & India closer? Yes, but…
India News: Find out the key findings of the All India Household Consumption expenditure Survey and its implications for the Indian economy. Discover the changing consumption patterns, rural-urban divide, and the impact on GDP and CPI. Are Bharat and India really getting closer? Read more to find out. Key Points
Times Of IndiaRobust tax mopup gives 433% boost to capex, says FM
Robust tax collections have increased capital expenditure and investment in infrastructure projects. Gross direct tax collections rose 16.77%, with expectations of further increase. Refunds worth ₹2.48 lakh crore were issued, and 1.66 crore income tax returns were processed in a day. Time for assessment reduced, faceless assessment introduced for transparency, and technology used to boost collections. Key Points
Economic TimesFY25 Capex target for CPSEs may rise by 12-13%
The Indian government is expected to increase the capital expenditure target for central public sector enterprises (CPSEs) in the fiscal year 2025 by 12-13%. The capital expenditure for 54 CPSEs and five departmental arms, including the Railway Board and National Highways Authority of India, is projected to be around ₹8.20-8.30 lakh crore for the upcoming fiscal year. Key Points
Economic Times
Rising capex share, falling subsidy burden — how Modi govt’s spending priorities differ from UPA’s
Last 20 years' data shows capex share in spending has risen since 1st term of Modi govt in 2014-15 & that of subsidies has dropped. Under UPA between 2004-2014, subsidies rose while capex fell. Key Points
ThePrintNREGS outlay for FY24 may see steep hike with 58% used in Q1
The Centre may have to sharply increase the outlay for its flagship rural job guarantee scheme, with 58% of the budgeted Rs 60,000 crore for 2023-24 used up in the first quarter itself, an official indicated. Almost steady work demand and up to 10.4% hike in wage rates under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) have kept expenditure under the programme elevated, the official told ET on condition of anonymity. Key Points
Economic TimesCM Sukhu declares lowest expenditure of ₹11 lakh in Himachal Pradesh assembly polls: ADR report
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has declared the lowest expenditure of ₹11.25 lakh and the BJP MLA from Chopal the maximum of ₹36.92 lakh in the last assembly polls Key Points
The HinduFrom beverages, packed food to medicines: How India’s spending patterns stack up
Food’s share in total household spending is now less than half in rural areas for the first time, official survey data showed. On average, a rural person spent ₹3,773 per month, compared to ₹6,459 per month in urban areas. Key Points
mintJ&K budget utilisation 20 per cent less in 2021-22: CAG
The CAG said an amount of Rs 21,646.17 crore was incurred under 33 schemes/Sub Heads in 10 Grants without budgetary provisions during 2021-22. Key Points
Financialexpress
‘Govt has set sight on marathon to 2047, emphasis on fiscal prudence’
Budget News: Finance secretary T V Somanathan discusses the government's focus on fiscal prudence and its goal of making India a developed country by 2047. Find out more about the Interim Budget and its roadmap for the future. Key Points
Times Of India‘Govt has set sight on marathon to 2047, emphasis on fiscal prudence’
Budget News: Finance secretary T V Somanathan discusses the government's focus on fiscal prudence and its goal of making India a developed country by 2047. Find out more about the Interim Budget and its roadmap for the future. Key Points
Times Of IndiaAmbedkar the economist: The lesser-known side of the Dalit icon
Bhimrao Ramji Ambedkar, the father of the Indian constitution, was an expert in economics, holding doctorate degrees from Columbia University and the London School of Economics. Ambedkar's important economic ideas included advocating for a gold standard, decentralizing government finance to each level of government to raise its own expenses, and consolidating land holdings in agriculture to achieve economies of scale. Ambedkar's ideas on India's agricultural economy remain relevant today. Key Points
Economic TimesThe budget jargon simplified for you
The budget is a financial statement that uses specialised language that the general public might not fully understand. It may be challenging to grasp or assess the budget if you are unfamiliar with these words. The essential terms for comprehending the budget are listed below. Key Points
Economic TimesUP & Kerala have highest out-of-pocket health costs. Inpatient care lion's share of national spend
Out-of-pocket expenditure is key indicator of level of financial protection available towards healthcare payments. National Health Accounts is in its 9th edition. Key Points
ThePrint
FM Sitharaman lauds reforms under Modi govt, asks India Inc to ‘join in a big way’
Finance Minister Nirmala Sitharaman has urged the corporate sector to increase private capital expenditure and participate in India's economic growth. She emphasized the trust of global investors in India and called for greater joint venture partnerships. Sitharaman also emphasized the continuation of reforms, including digital infra, and emphasized the role of the Indian industry in aligning with national interests. Key Points
Economic TimesFY23 deficit target met, capex marginally lower
According to the second advance estimate, nominal GDP in FY23 was estimated to be Rs 272.04 trillion, 0.38% lower than the first advance estimate of Rs 273.08 trillion. Key Points
FinancialexpressDelhi govt ‘snooping unit’: Ledger shows cash paid to ‘sources’
Records of cash with the unit were allegedly maintained in a register titled the ‘SSF (secret service fund) cash cum expenditure book’, which contained notings of money being given to “sources” for “operations”. This register alone tracked Rs 5 lakh the unit received, and by the time the unit wound up operations, the amount left was Rs 2,300, it is learnt. Key Points
The Indian ExpressModi govt's capex thrust key during Budget as pvt investment is still weak: Ex-NITI VC Kumar
Former NITI Aayog vice chairman Rajiv Kumar emphasized the Indian government's need to prioritize capital expenditure in the upcoming interim budget to bridge the infrastructure gap and boost the economy. He expects continued focus on investment and fiscal consolidation in the budget, with the government achieving its targets through improved tax-to-GDP ratios and rising capital expenditure. Key Points
Economic TimesBudget 2024: Is govt trying to manifest growth with the power of 11:11?
The number that caught the attention of not only analysts but various numerologists as well was the capital expenditure number which was Rs 11.11 lakh crore for FY24-25. The angel number 1111 carries profound significance and guidance. It is believed to hold a message of hope, positivity, and alignment with the divine. Key Points
Economic Times
ETMarkets Fund Manager Talk: Increased allocation to industrials on strong tailwinds for manufacturing: Pi
After consolidating at lower levels for more than a year, Indian markets have rallied. While Indian markets continue to be expensive relative to their EM counterparts, and rightly so, considering Indias growth prospects, the premium has shrunk from 100% to 60%, which makes Indian markets more attractive to foreign investors. Key Points
Economic TimesHere are 5 key takeaways from Household Consumption expenditure Survey 2022-2023 highlights
Other key findings include spending on food falls in expenditure of rural households in 11 years. Report made after survey of 2.76 lakh-plus households across country. Key Points
ThePrintRail, road ministries driving Centre's capex push
The Rail and Roads Ministries have led public expenditure during April and May, spending 23% of the fund allocated to them for 2022-2023, a total of over INR 1,14,000 crore against just under INR 5 lakh crore. Indian Railways spent over INR 55,000 crore as capital expenditure during the first two months, while the Ministry of Road Transport and Highways managed to spend INR 59,000 crore against an allocation of almost INR 2.6 lakh crore. Key Points
Economic TimesStates set to trim FY24 spend on roads, bridges
The combined capital expenditure of the 16 large states, which account for 80% of the country's gross domestic product (GDP), on roads and bridges will fall to 0.58% of the gross state domestic product, compared to 0.61% in the previous fiscal, according to their budgets. Key Points
Economic TimesShortfall in central grants to poor quality of expenditure — what budgets of Bihar, Punjab & UP show
For FY25, Bihar's assumption of revenue surplus seems optimistic, while UP's seems doable. In Punjab, main concern is that targeted reduction in fiscal deficit is to come by cutting capex. Key Points
ThePrint
SC ruling on bonds good but transparency problem in election expenditure still untouched
EBS is now gone, but ETS is still available, ECI should nudge political parties and the corporate world towards wider use of ETS. Then, at least one part of electoral funding can become cleaner. Key Points
ThePrintSmall-town consumers spent more on durables & education, less on staples: Report
Indian consumers in tier-2, tier-3, and rural markets prioritize consumer durables, education, and services over staples. The Bharat Lab's report highlights changing spending patterns, emphasizing the importance of sub-regionality and value consciousness, impacting sectors like fuel and tourism across different states. Key Points
Economic Times