Page 3 - Government Expenditure

Statsguru: 24% GDP contraction and enormity of Centre's fiscal challenge

If annual expenditure is kept unchanged from the budgeted Rs 30 trillion, a worst-case scenario can push Centre's fiscal deficit to 8.1 per cent of GDP

Q1 GDP numbers just first instalment of a bad news story on economy

If not for the numbers on agriculture and government expenditure, the GDP growth print for the first quarter of 2020-21 would have been far worse

How Covid-19's crippling effects are crushing govt funds, credit ratings

Almost 975 of those downgrades have been directly affected by Covid or the partly related collapse in oil prices. If cuts to rating outlooks are also added, that number rises to 1,939

Best of BS Opinion: Govt's limited fiscal cushion, doing-business concerns

From why this year's budgeted net tax revenue for the Centre is impossible to achieve to how Indians are blase about class-driven brutality, here's a selection of Business Standard Opinion pieces

Covid-19 crisis: No new scheme for a year as govt tightens purse strings

New schemes, up to Rs 500 crore, which have already been appraised by the departments and ministries, would also be suspended in the current financial year.

Modi, Williamson and Alesina

Williamson and Alesina were both economists who offered insights that India must follow over the next two decades. If it doesn't, it can resign itself to its current low-grade economic status.

Fiscal stimulus by FM is mostly credit oriented, says Subhash Chandra Garg

He said that the fiscal stimulus, by its very nature, is additional fiscal burden on the public finances

Govt to switch Rs 30,000 crore of bonds for longer tenure securities

Such switches happen to enable the government repay the loans at a later date to ease the strain on the exchequer in the immediate term.

Bonds rally as traders estimate govt's stimulus likely to see limited spend

The yield on the most-traded 6.45 per cent 2029 note dropped 10 basis points to 6 per cent, extending Wednesday's 7-basis point fall.

Govt likely to purchase gold from households without seeking the source

To use it as collateral, along with forex reserves, to print currency

RBI raises limit on ways and means advances, but states aren't impressed

Ways and means advances (WMAs) are short-term advances the central bank gives to help states tide over temporary mismatches in their cash flow.

Fiscal space: Not if but how

In the first part of a series, the authors argue the means must be found to avert potential economic and social collapse post-Covid

All govt departments told to cut expenses by 60% amid coronavirus outbreak

Each department has to make the "savage cuts" by redoing the Budget maths.

Govt's total receipts at Rs 12.82 trn in Apr-Jan; spending at Rs 22.68 trn

The Government of India has received Rs 12,82,857 crore up to January 2020, an official statement said

Govt may breach fiscal deficit target; need for stimulus rises: Report

The government might breach the fiscal deficit target this financial year amid drop in the revenue mobilisation and expected additional expenditure by the government, says a report. According to Dun & Bradstreet's Economy Forecast, the need for fiscal stimulus has increased even as the government finances remain "strained". "We expect that the drop in the revenue mobilisation of the government and likelihood of additional expenditure by the government might breach the fiscal deficit target in FY20," Dun & Bradstreet India Chief Economist Arun Singh said. The government has set a 3.3 per cent fiscal deficit target for the current fiscal. Singh further added that given the resources constraints, increase in fiscal deficit might lead to crowding out of private investments. According to the report, corporate liabilities are already higher. The balance-sheets of corporates, government, banks and households remain constrained or weak and revenue collection will play an important ...

Govt cuts expenditure limit for March quarter as revenue collection falls

The government has asked all departments to restrict the expenses to 25 per cent of the Budget Estimate (BE) in January-March

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?

Needed: A white paper on the Indian economy

Economic sentiment is as important as the actual data on the economy

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

Low tax revenue, high spend push H1 fiscal deficit to 93% of FY20 target

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