Nirmala Sitharaman returns as Finance Minister with analysts' votes in favour of Modi's faith in her
Modi's new cabinet: Indian Prime Minister Narendra Modi's decision to reappoint Nirmala Sitharaman as the country's finance minister signals policy continuity, reassuring market analysts. With a focus on infrastructure and fiscal discipline, Sitharaman faces the challenge of managing fiscal demands in a coalition government. Analysts predict a continued emphasis on infrastructure spending and adherence to fiscal conservatism. Key Points
Economic TimesLok Sabha results won't force India's budget to make significant policy shifts: Fitch
Fitch Ratings anticipates minimal policy shifts in India post-election losses. The upcoming July budget will detail economic reform plans and fiscal goals for the next five years, crucial for addressing fiscal metrics, reducing debt, potential deviations from capital expenditure commitments, the risk of heightened social spending, progress in judicial reforms at the state level, and reforms in the manufacturing sector. Key Points
Economic TimesPost-pandemic stimulus well managed by India: Study
RBI study reveals minimal impact of post pandemic fiscal stimulus on Indian inflation compared to major economies. Empirical analysis shows positive relationship between fiscal expansion and inflation, urging fiscal consolidation in India by 2025-26. Key Points
Economic TimesStates' capex focus pivots away from roads to social services
States are expected to reduce their capital expenditure on roads in FY25, focusing more on social services like public health and education. This shift is partly due to the post-pandemic realization of the need to develop human capital. States are also aiming to meet their fiscal targets, with some compromising on road spending to achieve this. While overall spending on roads by states is set to increase, the growth rate is slowing down compared to previous years. The central government is also expected to reduce its spending on roads in FY25. Key Points
Economic TimesIndia's April-January fiscal deficit at Rs 11.03 lakh crore, narrows on-year to 63.6% of revised FY24 aim
India's fiscal deficit for April to January, or the first 10 months of this fiscal year, was at 11.03 lakh crore rupees, equivalent to 63.6% of annual estimates, narrowing from the previous year's 67.8%. The government aims to narrow the fiscal gap to 5.8% of GDP in this financial year from 6.4% a year earlier. Key Points
Economic Times
India to grow 6.5% in FY25, down from 6.9% this fiscal: Ind-Ra
India's economy is expected to grow by 6.5% in the fiscal year 2024-25, supported by sustained government capex, soft global commodity prices, and signs of growth in the private corporate capex cycle, according to India Ratings and Research. The forecast aligns with the International Monetary Fund's projection but is below the Reserve Bank of India's estimate of 7%. Key Points
Economic TimesAirlines set to soar, 20% rise in profit expected
The domestic airline industry will see operating profit rise more than 20% next fiscal, after a near-tripling this fiscal, fuelled by a strong recovery... Key Points
The Tribune IndiaOberoi Hotels Q3 profit zooms 55% to Rs 230 crore
India Business News: Oberoi Hotels parent EIH reports one of its highest quarterly profits in Q3 of fiscal year 2023-2024. Consolidated revenue up 27.6% over same period last fiscal. Key Points
Times Of IndiaChidambaram compares India's fiscal deficit under UPA and NDA, BJP says 'flip-flop'
Congress leader P Chidambaram said the fiscal deficit was 4.5 per cent in the UPA's terminal year 2013-14 while it is 5.8 per cent under the NDA in 2023-24. Key Points
India TodayConfident and calculated: Interim Budget 2024-25 strikes a smart balance
The unexpected fiscal Deficit target for FY25, set at 5.1% of the GDP, pleasantly surprised the market, which had anticipated a higher figure. Keeping such an aggressive target has several positive implications for the market. Key Points
Economic Times
Thrust is on letting economy grow on its own momentum: CEA Anantha Nageswaran on next-gen reforms
India's fiscal deficit had shot up to 9.2% of GDP in FY21 following the additional spending to provide stimulus to the economy hit by Covid. The Chief Economic Adviser asserted that the latest target of 5.1% of GDP is realistic. Key Points
Economic Timesfiscal 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 TimesIndia has bigger strategies for middle-class beyond Budget's income tax slab disappointment
The common man awaits to hear in the Budget if the government will ease tax rates, impacting cash in hand. While the interim Budget didn't change income tax slabs, it did address the headache of fiscal deficit, which impacts a country's wallet. fiscal prudence was prioritised, and the government aims to narrow the budget gap. A higher fiscal deficit leads to higher government debt and higher interest payments. The government stuck to fiscal prudence despite elections, and reduced borrowing may lead to lower interest rates. Key Points
Economic TimesFiscally prudent Sitharaman’s Budget moves may ring in era of cheaper home loans once again
In the Interim Budget 2024, India's Finance Minister Nirmala Sitharaman announced fiscally strict measures, resisting populist actions before the upcoming General Elections. Lower borrowing, increased capital expenditure, and anti-inflationary measures are expected to pave the way for rate cuts, providing relief to the common man, particularly in the housing sector. Key Points
Economic TimesG-sec prices jump as government trims fiscal deficit, sticks to glide path
Budget News: The finance minister's decision to prefer fiscal prudence over populist measures, which include lower fiscal deficit and market borrowing targets for FY25, were considered anti-inflationary by bond market players, leading to a rally in govt bond prices on Thursday that softened yields. FM said that govt is on track to meet glide path of below 4.5% fiscal deficit target for FY26. Key Points
Times Of India
Budget 2024: All's well that still sticks to welfare delivery
Some might fret over the likely impact on economic growth of the capex compression. However, GoI could well argue that the private sector is likely to step up in the next fiscal. Lower borrowings due to the deficit compression could reduce borrowing costs for the private sector and help investment recovery. The government bond market has responded well to the deficit (and borrowing)-reduction plans. Key Points
The Economic Timesfiscal impulse should result in higher consumption in rural, mass market and bottom of the pyramid: Nilesh
The commentary on the budget has had a more positive impact on the bond market compared to the stock market. The unexpected drop in yields has cheered the bond market. The fiscal deficit number of 5.1% has exceeded the debt market's expectations. The lower net borrowing program and the possibility of rate cuts in the second half of CY24 have given confidence to the market. The capital expenditure target for this year has been revised down to 950,000 crore, but there is still a 17% increase compared to last year. Key Points
Economic TimesReduced deficit, lower government debt set to push down interest rates
Budget News: The interim budget has laid the ground for cheaper home loans and lower interest rates in general. The lower fiscal deficit of 5.1% has meant borrowing is almost Rs 1 lakh crore lower than expected. Also, since more of the government spending is going towards capex, it will not be inflationary and would make it easier for RBI to reduce rates in future. By pegging the fiscal deficit at a lower level and pruning central borrowings, the Centre is seen as having put subtle pressure on RBI to boost liquidity and soften interest rates. Key Points
Times Of IndiaBudget 2024: Focus still on GDP - Governance, Development and Performance
Finance Minister Nirmala Sitharaman emphasized the government's focus on GDP, representing governance, development, and performance. She highlighted achievements such as three consecutive years of 7%-plus growth, India being the fastest-growing economy in the G20, and efforts in inflation management, pandemic response, and infrastructure development. Sitharaman addressed questions about fiscal deficit reduction, capital expenditure, and initiatives for social justice and inclusion. She also noted the government's commitment to fiscal consolidation and the ongoing review of the National Pension System. Key Points
Economic TimesInterim budget firmly conveys govt’s commitment to fiscal consolidation: Moody’s
Moody's Investors Service praises India's interim budget for its commitment to fiscal consolidation goals and fiscal restraint. The budget focuses on reducing spending as a percentage of GDP to drive the reduction in the fiscal deficit. However, Moody's warns that emerging spending needs not included in the budget could restrict the government's ability to meet its deficit target. Key Points
Economic Times
Sitharaman to rating agencies after Budget: India is not just adhering to, but bettering its fiscal roadma
Union finance minister Nirmala Sitharaman announced on Thursday that the government is not only aligning with the previously set fiscal consolidation roadmap, but also improving upon it. Sitharaman made this statement during a press conference following the presentation of the interim Budget, in response to a question about the message for rating agencies regarding India. Key Points
Economic Times'Walked the path of fiscal prudence’ — what economists say about interim budget 2024’s fiscal maths
While boosting capex & rural spending, govt has set fiscal deficit target of 5.1% of GDP, which means Centre will have to borrow less to finance deficit, allowing pvt sector to borrow more. Key Points
ThePrintEx-FICCI chairman surprised by fiscal deficit target: ‘Don't know on what basis’
India will reduce its budget gap sharply in 2024-25 to 5.1% of gross domestic product (GDP), Finance Minister Nirmala Sitharaman told parliament. Key Points
Hindustan TimesBudget 2024: Economists say fiscal numbers look more realistic
Analysts and economists praise the interim Budget's fiscal projections, highlighting the government's commitment to fiscal consolidation. The projected fiscal deficit numbers for FY24 and FY25 indicate that the target of 4.5% fiscal deficit by FY26 is achievable. The net market borrowing in FY25 will positively impact the bond market and 10-year G-sec yields. The higher than expected capex and lower fiscal deficit suggest healthier expenditure quality. Key Points
Economic TimesIndia Budget: New Delhi to borrow Rs 14.13 lakh crore in FY25, bond yields plunge
Budget Announcements: The Indian government plans to borrow 14.13 trillion rupees ($170.36 billion) in the next fiscal year, lower than economists' estimates, according to Finance Minister Nirmala Sitharaman. Net borrowings are expected to remain largely unchanged from the current fiscal year, at 11.75 trillion rupees. The funds will be used to finance a fiscal deficit of 5.1% of GDP, with the government also conducting switch auctions worth 1 trillion rupees. Additionally, 4.66 trillion rupees will be raised through India's small savings fund to cover the budget gap. Key Points
Economic Times
Budget for world's fastest growing economy: Key numbers to be watched
Sitharaman, who would be presenting her sixth straight budget, had in her first Budget in 2019 replaced the leather briefcase -- which had been in use for decades for carrying budget documents -- with a traditional 'bahi-khata' wrapped in red cloth. This year's Budget would be in paperless form, as done in the last three years. Key Points
Economic TimesBudget 2024: Three things to watch for in the Interim budget
The Union Budget for this fiscal placed a strong emphasis on capital expenditure (capex), earmarking nearly 4.5% of gross domestic product (GDP) to fund infrastructure. For sure, the infusion of funds came at the cost of trimming some welfare expenditure – or so it seemed. Key Points
Times Of IndiaIndia's fiscal deficit for April-December at Rs 9.82 lakh crore, narrows to 55% of FY24 aim
India's fiscal deficit for April to December, or the first nine months of this fiscal year, was at 9.82 lakh crore rupees, equivalent to 55% of annual estimates, narrowing from the previous year's 59.8%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier. Key Points
Economic TimesUnion Budget will need to balance fuel price cuts with an eye on consumption
With the Budget approaching, there is speculation about a possible cut in excise duty on petrol and diesel. However, the stabilization of global oil prices makes further reductions in fuel taxes unlikely. Oil Marketing Companies (OMCs) have seen enhanced marketing margins due to the softening of crude prices, which could warrant a fuel price cut. The fiscal deficit and the impact on state tax collections are important considerations. Key Points
Economic TimesGovernment spending and the challenge of fiscal consolidation in FY25
For 2024-25, the key challenge is ramping up disinvestment and asset monetization programs to fund critical spends without compromising the deficit. Additionally, completing flagship welfare schemes and increasing investment spending are priorities. Key Points
mint
Budget 2024: What to watch out for in India’s pre-Lok Sabha election Budget
Interim Budget: Prime Minister Narendra Modi will likely use the last budget of the present government before the elections to woo voters with new spending measures, while avoiding a fiscal deficit increase. The economys rapid expansion has led to a tax windfall for the government, helping it meet its goals of curbing the deficit. Finance Minister Nirmala Sitharaman, who will deliver her sixth budget speech on Feb. 1, has scope to keep infrastructure spending going and take targeted steps to support Modis priority sectors for the elections: farmers, women, the poor, and young people. Key Points
Economic TimesGovt may prune FY25 fiscal gap target to 5.3-5.4% on slower capex
India's fiscal deficit target for FY25 is expected to decrease significantly in line with post-Covid consolidation plans, potentially dropping to a range of 5.3-5.4% of GDP from the current year's 5.9%. Despite a slowdown in capital asset investments, gross market borrowing is anticipated to remain high, with estimates for FY25 around ₹15.3 lakh crore. The reduction in the fiscal deficit target is attributed to a slower pace of capital expenditure, providing room for consolidation. The government is committed to lowering the fiscal deficit to below 4.5% of GDP by FY26. Key Points
Economic TimesView: This Budget, keep India fiscally fit
The forthcoming interim budget is expected to meet the FY24 fiscal deficit target of 5.9%. Enhancements to India's fiscal capacity are needed instead of large spending cuts. Infrastructure capex push is bridging the infrastructure gap and creating construction jobs. Steep public spending cuts should be avoided as it could drag down growth. India's fiscal problem lies in raising enough revenue. Better revenue mobilisation will reduce the share of revenue deficit in the overall fiscal deficit. Efforts to enhance revenue should be prioritised alongside maintaining quality public spending and lowering the fiscal deficit ratio. Key Points
The Economic TimesBudget 2024: India’s resolve on fiscal prudence may counter tricky temptations
Interim Budget: The upcoming interim budget is crucial in terms of fiscal prudence and setting the path for achieving the fiscal consolidation target. Credit rating agencies are closely watching for any signs of fiscal slippage. The budget will provide a glimpse into the government's fiscal strategy and its seriousness about debt sustainability. Recent fiscal measures, such as LPG price cuts and increased support for lower-income groups, have been aimed at appeasing citizens. The government's focus on fiscal prudence and productive capex is expected to continue in the budget. Key Points
Economic TimesBudget Basics: What is the budget gap? How does the government fill it?
Interim Budget 2024: The fiscal deficit, also known as the budget gap, is the result of government spending exceeding its earnings. This leads to government debt, which has implications for interest rates and bond yields. Excessive market borrowing by the government can crowd out private players. High fiscal deficits can lower sovereign credit ratings and pose an existential crisis for the economy. Key Points
Economic Times
Interim Budget may target 5.3% fiscal deficit for FY25: Ind-Ra
Budget 2024: India Ratings and Research (Ind-Ra) stated that the government aims to achieve a fiscal deficit to GDP ratio of 5.3% in FY25. However, it may miss the 5.9% target for FY24 due to a lower nominal GDP growth rate. The government plans to reduce the fiscal deficit to 4.5% of GDP by FY26. Ind-Ra projected a net tax revenue buoyancy ratio of 1.2x in FY25. It also noted a slowdown in capex growth in FY25 and limited scope for revenue expenditure rationalization. Key Points
Economic TimesBudget 2024: Experts expect FM Sitharaman to set 5.3% fiscal deficit target for FY25
Budget News: Experts expect FM Sitharaman to set a 5.3% fiscal deficit target for FY25 in Budget 2024. The government aims to align with the fiscal consolidation plan until 2026 by normalizing capital spending and refraining from major announcements in the interim budget before the general elections. Key Points
Times Of IndiaBudget 2024: 5 key factors investors should watch out for
Budget News: The upcoming Union Budget for 2024 is expected to have implications for investors, with a focus on tax relief measures, capital expenditure, fiscal deficit, subsidies, and market borrowings. Find out the key factors investors should watch out for in Budget 2024. Key Points
Times Of IndiaBudget 2024 expectations: fiscal consolidation is to continue in FY25 despite poll pressure, says BofA Securities.
Budget 2024 expectations: BofA Securities expects the Centre to meet its fiscal deficit target of 5.9% of GDP in FY24. For FY25, they see the Centre’s fiscal deficit to consolidate further to 5.3% of GDP, despite poll pressure. Further tracking the glide path it is seen at 4.5% of GDP by FY26. Key Points
mintBudget 2024: India's fiscal deficit to be budgeted at 5.3 pc of GDP in FY25: BofA Securities
Interim Budget: Finance Minister Nirmala Sitharaman is expected to project India's fiscal deficit at 5.3% of GDP in the upcoming budget for FY25, despite poll pressure. The government will meet its FY24 commitment to reduce the fiscal deficit to 5.9%, BofA Securities said in a note.. This reduction will be achieved through a strategy of capital expenditure driven growth instead of expenditure compression, leveraging digitization-led formalization to improve tax buoyancy and reduce subsidy leakage. The revenue receipts are estimated to grow by 10.5%, with a 10% increase in tax revenue and a 14% jump in non-tax revenue. There will also be a modest increase in divestment proceeds. Key Points
Economic Times
Budget 2024 may be interim but investors need to watch out for these 5 things
The upcoming Union Budget, an interim one in an election year, is unlikely to have any spectacular announcements but could still have significant outcomes for investors. The focus is expected to be on tax relief measures to boost consumption and investment, especially for salaried individuals and MSMEs. Key Points
Economic TimesModest expenditure hike likely in Interim Budget 2024 as Centre looks to stay on fiscal glide path
The government aims to limit the increase in overall spending to around 10% in the interim budget for FY25, balancing the need for sustained growth with fiscal consolidation imperatives. It plans to achieve this by raising capital expenditure at a slower pace, while moderately increasing revenue spending. The government has set a fiscal deficit target of 4.5% of GDP by FY26 and expects to meet the target this year. Key Points
Economic TimesResist temptation: The interim budget must show fiscal prudence
India has largely been fiscally responsible and our post-pandemic economy requires us to maintain that record. Sitharaman’s interim budget of 1 February should make that clear. Key Points
mintBudget 2024: Govt will meet fiscal deficit target in FY24, follow fiscal consolidation path for next year:
“If spending remains muted in the current quarter, the deficit may end up at 5.8% of GDP,” the global investment bank said, noting that receipts upside of 0.2% will help meet this years target and that the government will follow the path of fiscal consolidation. Key Points
Economic TimesBudget 2024: 5 essential questions for investors answered by Goldman Sachs
Budget 2024: Goldman Sachs in their report answers five key investor questions before the India Union budget for fiscal year 2025. They expect the government to meet the FY24 fiscal deficit target of 5.9% of GDP and expect the government to announce a fiscal deficit target of 5.2 - 5.4% of GDP FY25 Key Points
mint
Interim Budget: fiscal deficit target may be set at 5.3% in FY25, say experts
...major policy changes and announcements are unlikely. ICRA expects the fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6% for FY24 and the medium-term target of sub-4.5% by FY26, said Aditi Nayar, chief economist, Icra. Key Points
Economic TimesBudget 2024: No major moves in budget; capex to normalise, fiscal deficit at 5.3% in FY25, say economists
“…major policy changes and announcements are unlikely. ICRA expects fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6.0% for FY2024 and the medium-term target of sub-4.5% by FY26,” said Aditi Nayar, chief economist, Icra. Key Points
Economic TimesIndia's fiscal policy over the past five years has much to commend it
More transparent accounting, a calibrated policy approach and relatively realistic assumptions have resulted in credible Union budgets. These have done a worthy job under tough circumstances, although our public debt burden now requires reduction. Key Points
mintInterim Budget 2024-25: Key numbers to watch out
Interim Budget 2024: Finance minister Nirmala Sitharaman will soon present her sixth budget on February 1 and the last one before the general elections in April-May. The Centre will seek to build on the growth momentum witnessed in the past two years without undermining fiscal discipline. Key Points
Economic TimesRobust tax mop-up limits fiscal deficit to 50% of FY24 goal
The government's fiscal deficit is expected to remain in line with the estimated ₹17.9 trillion for the full fiscal year, as tax revenue grew and spending and subsidy outgo were in line with estimates. Key Points
mint
fiscal Deficit: India's budget gap for April-November at Rs 9.07 lakh crore, narrows to 50.7% of FY24 aim
Budget Gap: India's fiscal deficit for April to November, or the first eight months of this fiscal year, was at 9.07 lakh crore rupees, equivalent to 50.7% of annual estimates, marginally narrowing from the previous year's X%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier. Key Points
Economic TimesInterim budget: Govt likely to give populist spending a pass ahead of general election
Interim budget: While the numbers are being worked out, the Centre may peg its FY25 fiscal deficit at the current fiscal level (budgeted at ₹17.87 lakh crore) or even reduce it, said one of the persons cited. This would lead to a meaningful cut in the fiscal deficit relative to nominal GDP that's expected to expand at a double-digit pace in FY25, one of the officials told ET. Key Points
Economic TimesInterim Budget must put India quickly back on fiscal glidepath if it derails
Budget 2024: India Ratings and Research warns that India's fiscal deficit could exceed the targeted 5.9% for FY24 due to increased expenses and lower nominal GDP. The interim budget measures will be crucial to stick to fiscal discipline, which is key for economic stability. India would require improved tax collections and has to meet divestment goals for fiscal prudence. Key Points
Economic TimesAgri pump makers to see 7-9% revenue growth next fiscal, says CRISIL
The sector is dominated by conventional pumps (grid-connected and diesel pumps) which have ~90% share, with the remaining comprising solar pumps. Demand for agri pumps is largely resilient — a ‘good monsoon drives up farm incomes and pump purchases, buoyed by healthy kharif crops, while a ‘deficient monsoon necessitates the usage of pumps to irrigate rabi crops. Key Points
Economic TimesAgri pump makers to see revenue growth of 7-9% in FY25: CRISIL
Agricultural (agri) pump makers will see healthy revenue growth of 7-9% in fiscal 2025, supported by resilient domestic demand for conventional pumps and a surge in offtake of solar pumps, largely under the PM Kusum Scheme, according to CRISIL Ratings. This will follow a likely revenue growth of 8-10% in the current fiscal. Key Points
Economic Times
Interim Budget 2024: What is known as fiscal glide path?
Interim Budget 2024: India struggles to meet the 4.5% GDP fiscal deficit goal for 2025-26, despite reducing from 9.5% due to COVID-19. The 5.9% target for 2023/24, down from 6.4% in 2022/23, faces scrutiny amid calls for fiscal flexibility. The fiscal glide path, proposed by the NK Singh committee, aims to decrease deficits gradually. Economic slowdown challenges hitting tax revenues may lead to missing targets, with an escape clause allowing a 0.5% GDP deviation. Government financing methods for deficits might trigger inflationary pressures, impacting spending and investments. Key Points
Economic TimesFitch 'neutral' on China, flags realty risks
China's economic growth will moderate to 4.6% next year from 5.3% in 2023, the ratings agency said in a Wednesday report titled Greater China Outlook 2024. While a greater usage of fiscal policy will limit downside risks, Fitch noted such supports may keep fiscal deficits wide at a time when the country's fiscal metrics have already eroded compared to peers with similar sovereign ratings. Key Points
Economic TimesState election victory to reduce risk of fiscal populism, say experts
The Bharatiya Janata Party's (BJP) victory in three states is expected to reduce the risk of fiscal populism in the lead-up to the 2024 general elections, according to economists. The government may announce incremental support measures, but aggressive welfare spending with significant fiscal costs is unlikely ahead of the general polls. Key Points
Economic TimesState indebtedness to stay high at 31-32% in FY24: Crisil
The rating agency noted that overall borrowings of 18 states, which constitute 90% of the countrys gross state domestic product, is likely to increase by 9% to over Rs 87 lakh crore in FY24 compared with Rs 79.5 lakh crore in FY23. Key Points
Economic TimesGovt confident of adhering to 5.9% fiscal deficit target: Finance Secretary
The government is confident in meeting the budgeted 5.9% fiscal deficit target for the current fiscal year, despite the extension of the free ration scheme. Finance Secretary T V Somanathan stated that the decision to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) doesn't deviate from the fiscal consolidation path. The scheme, providing 5 kilograms of free foodgrains monthly to 81.35 crore poor people, was extended for another five years at a cost of approximately Rs 11.80 lakh crore. The fiscal deficit for April-October stood at Rs 8.03 lakh crore, constituting 45% of the full-year budget estimate. Key Points
Economic TimesGovt confident of adhering to 5.9 pc fiscal deficit target, says official
New Delhi, Nov 30 (PTI) The government is confident of adhering to the 5.9 per cent fiscal deficit target budgeted for the current fiscal and the extension of free ration scheme will not impact the fiscal consolidation path, Finance Secretary T V Somanathan said on Thursday. “I am confident, as of today, we will adhere […] Key Points
ThePrintIndia's fiscal deficit for April-October at Rs 8.04 lakh crore, narrows to 45% of FY24 aim
India's fiscal deficit for April to October, or the first seven months of this fiscal year, was at 8.037 lakh crore rupees, equivalent to 45% of annual estimates, marginally narrowing from the previous year's 45.6%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier. Key Points
Economic TimesInterim Budget for FY25 to be realistic: Official
The government had budgeted total expenditure at ₹ 45 lakh crore for FY24, while its tax and non-tax revenue was pegged at ₹26.3 lakh crore. The government is sticking to its budgeted FY24 nominal GDP growth rate (10.8% upon the revised base) for now, he said, indicating that any change in the pace of expansion is unlikely to disrupt the fiscal deficit ratio target. Key Points
Economic TimesMoody's turns negative on US credit rating, draws Washington ire
Moody's on Friday lowered its outlook on the U.S. credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration Key Points
Business TodayIndia’s tax windfall gives Modi scope to spend more on welfare
Bloomberg Economics estimates the central governments total receipts will be about 1.9 trillion rupees ($22.8 billion) above the budgeted amount in the current fiscal year than ends in March 2024. Thats equivalent to 0.6% of gross domestic product. Key Points
Economic Times
India's fiscal deficit contained at 39% of FY24 target
In the first half of the fiscal year, the fiscal deficit of the Indian government has reached 39.3% of the annual target, compared to 37.3% during the same period in the previous year, according to official data released on Tuesday. However, the fiscal deficit has been kept under control after experiencing an initial spike until July. Key Points
Economic TimesIndia's fiscal deficit for April-September at Rs 7.02 lakh crore, widens to 39.3% of FY24 aim
India's fiscal deficit for the first half of the current fiscal year, ending in September, was 7.02 lakh crore rupees, equivalent to 39.3% of annual estimates, an increase from the previous year's 37.3%. The government aims to reduce the fiscal gap to 5.9% of GDP, down from 6.4% in the previous financial year. Key Points
Economic TimesUS budget gap soars to $1.7 trillion, largest outside COVID era
The Treasury Department said the deficit was the largest since a COVID-fueled $2.78 trillion gap in 2021. It marks a major return to ballooning deficits after back-to-back declines during President Joe Biden's first two years in office Key Points
mintByju's may layoff about 3,000-3,500 workforce this month, targets to be profitable by March 2024
As per details, the firm's losses in the 2020-21 fiscal widened from ₹231.69 crore in 2019-20, and the revenues during FY21 dropped to ₹2,428 crore from ₹2,511 crore in FY20. Key Points
mintIndia's fiscal deficit for April-August at Rs 6.43 lakh crore, widens to 36% of FY24 aim
India's fiscal deficit for the first five months of the current fiscal year, ending in August, reached 6.43 lakh crore rupees, equivalent to 36% of the annual estimates, according to government data. This represents an increase from the 32.6% deficit reported during the same period the previous year. Key Points
Economic Times
India'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 TodayIndia's fiscal deficit for April-August at 6.43 lakh crore, widens to 36% of FY24 aim
India's fiscal deficit for the first five months of the current fiscal year, ending in August, reached 6.43 lakh crore rupees, equivalent to 36% of the annual estimates, according to government data. This represents an increase from the 32.6% deficit reported during the same period the previous year. Key Points
Economic TimesValiant Laboratories IPO opens today. Should you subscribe to the issue?
The pharmaceutical API industry in India is ranked third-largest globally in terms of volume. It is expected to clock a CAGR of 5-7% between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets. Key Points
Economic TimesIndia's April-July fiscal deficit at Rs 6.06 lakh crore, widens on-year to 33.9% of FY24 aim
India's fiscal deficit for the first four months widened from the same period a year earlier. Going ahead, while the government's decision to cut LPG cylinder prices is expected to have a limited fiscal impact, the calls to reduce petrol and diesel prices could affect the deficit. However, a surplus transfer of Rs 87,416 crore from the Reserve Bank of India has provided some cushion and also lifted India's non-tax revenues. India aims to narrow the fiscal gap to 5.9% of gross domestic product from 6.4% in the last financial year. Key Points
Economic TimesGovernment will adhere to fiscal deficit target of 5.9 pc for FY'24
The government will stick to the fiscal deficit target of 5.9 per cent of the GDP as robust tax, non-tax collections will help meet the spending requirement and make up for any shortfall in disinvestment proceeds, Finance Secretary T V Somanathan said on Friday. Key Points
Economic Times
America’s fiscal Time Bomb Ticks Even Louder
Fitch’s downgrade of the U.S. debt rating only caused a flutter in markets, but fiscal strains will soon get harder to ignore Key Points
mintIndia's April-June fiscal deficit at Rs 4.51 lakh crore, widens on-year to 25.3% of FY23 aim
While announcing the federal budget for this fiscal year, Finance Minister Nirmala Sitharaman said India aims to narrow the fiscal gap to 5.9% of gross domestic product from 6.4% in the last financial year. Key Points
Economic TimesIndia to stick to fiscal prudence despite threats from disinvestment and weather hindrances
India is unlikely to miss its budget deficit target for this fiscal year due to support from the central bank, despite hindrances such as weather, risks from divestment revenue and meek corporate tax collections, economists claim. The banks had tripled their surplus transfer to the government, allowing the state to reap a windfall that ameliorates concerns about any instability in its financial position. Key Points
Economic TimesPoultry revenue to grow at 10% this fiscal, says Crisil
The Indian poultry sector is expected to see a growth in revenue of around 10% in the current fiscal year fuelled by sustained demand, according to a report by CRISIL Ratings. Operating profitability is also predicted to increase by 70 basis points, helped by a decline in feed costs thanks to softer soy and maize prices. Last fiscal year saw the sector record a 25% topline surge creating a high base for the current year. Key Points
Economic TimesTaller highways construction targets being fixed ahead of 2024 elections
A senior Roads Ministry official told ET that highway construction goals for the fiscal are being redrawn after top government functionaries expressed dismay at modest targets. He also said there will be higher retail participation in the coming round of National Highways Authority of India (NHAI) infrastructure investment trust (InvIT) fund raise. Key Points
Economic Times
Banks may see compressed margins this year
Rating agencies are forecasting a fall in net interest margins (NIMs) for Indian banks of 10-20 basis points to 3.0-3.1% in the current fiscal year, due to rising deposit costs. However, the growth of non-performing loans could eventually increase profits the following year. Icra suggested that while this year's loan growth is likely to slow, adding higher interest rates may help to create the second-highest increase on record; in contrast, the banking system would see upward pressure on deposit costs, thereby putting pressure on NIMs. Key Points
Economic TimesReading beyond India's GDP optimism: With advanced countries slowing, circumspection would make sense
India's GDP growth has slowed to 7.2% in fiscal 2023 from 9.1% the previous year, due to sluggish merchandise exports and decelerating advanced economies. The country is expected to grow at 6% this fiscal due to global headwinds, lowering growth in areas such as export-oriented domestic manufacturing, which is being hurt directly by weak exports. Despite the slowdown being felt in the manufacturing sectors, services such as travel, tourism and entertainment remain strong and output grew 9.5% in fiscal 2023.Feedback from the Indian Meteorological Department has recently predicted a normal monsoon season, however activity in the farming and agriculture sectors remains vulnerable. Key Points
Economic Times