Fiscal Deficit Target

The fiscal deficit is the difference between the government's expenditure and revenues when the former is higher

Budget 2023-24: The Centre is expected to peg the fiscal deficit target for FY24 below 6 per cent, and the capex is likely to jump 20-30 per cent

The central government is on track to meet its fiscal deficit target of 6.4 per cent of the GDP for 2022-23 on the back of strong growth in revenue collections, the World Bank said in its India Development Update on Tuesday. High nominal GDP growth in the first quarter supported strong growth in revenue collection, especially Goods and Services Tax (GST), despite tax cuts on fuel. Notwithstanding an increase in spending due to expanded fertilizer subsidies and food subsidies for vulnerable households in response to the commodity price shock, the government is on track to meet its FY22/23 fiscal deficit target of 6.4 per cent of GDP and the general government deficit is projected to decline to 9.6 per cent from 10.3 per cent in FY21/22 and 13.3 per cent in FY20/21. Public debt is also projected to decline to 84.3 per cent of GDP in FY'23, from a peak of 87.6 per cent in FY'21, it said. The central government's revenues increased by 9.5 per cent and spending by 12.2 per cent. As a .

The govt would do well to be cautious and resist the temptation of increasing expenditure in the run-up to the Lok Sabha elections because the economy is likely to slow in the second half of the year

Sabnavis said the progress till August shows that the government's accounts are on course compared with last year

Says macroeconomic fundamentals and forex reserves are robust enough to deal with current geo-political challenges

Life Insurance Corporation of India's board on Saturday approved selling a 3.5% stake for about Rs 210 billion ($2.8 billion), far lower than the Rs 500 billion estimated before Russia invaded Ukraine

Savings in some departments may come to govt's aid

Despite the spike, it may not push up govt's borrowing cost much due to various factors such as sale of BPCL and LIC, and lower expenditure levels this fiscal

This was on the back of better-than-expected revenue receipts with expenditure staying broadly at the level targeted in the revised estimates of the Budget

The govt expenditure this year (till October-end) was at roughly the same level as that seen in the same period last year

A correction in consumption demand is cited as a major reason for a dip in economic growth to a decadal low of 5 per cent

India's consolidated deficit (the Centre and states combined) is the highest among the G20 nations, she added.

Thakur also listed out the steps taken by the government to boost economic activities.

With little headroom for fiscal expansion given the falling tax collections, the government will have to cut its expenditure, says an economist. The fiscal deficit target of 3.4 per cent of GDP is likely to slip, DK Joshi, the chief economist at the rating agency crisil said here on Friday. "Fiscal policy doesn't have much space. Government is avoiding any fiscal stimulus to the economy and revenues are falling short. They will have to cut expenditure again just as they did last year unless they are able to realise a lot of money by privatisation or divestment or asset sales," Joshi said at an S&P Dow Jones Indices event. He said the GDP growth, which slipped to 5 per cent in the first quarter, is expected to be worst in the second quarter- sub 5 per cent. "We hope that it is going to be bottom out soon and we will see a very mild recovery," he said. Joshi said with the stronger mandate, the Narendra Modi-led government has the ability to take stronger measures to ..

Concerns have been raised by different agencies about the ability of the government to meet the fiscal deficit target

Though the figure seemed alarming, it was bit lower than 95.3 per cent in the corresponding period of 2018-19

The government's fiscal consolidation efforts may result in a squeeze on its capital expenditure

Sandip Somany also said that the Modi government would be remembered because of the IBC

Analysts expect a shortfall of Rs 500 billion in Central GST (CGST) in FY19