While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
Kerala brought down the deficit for 2022-2023 to under 3 percent, in line with FRBM guidelines, but is still expecting to slightly breach the limit in 2024-2025 and 2025-2026.
Govt has done well to stick to path of fiscal consolidation. It’s unclear if compression of revenue spends net of interest payments is the direction the govt would like to take in coming yrs.
Corporate tax collections saw modest growth of just 1.2%, but a 20.2% rise in income tax collections helped strengthen the government's overall revenue position.
Maharashtra has headroom to spend, but committed expenditure is expected to rise. In Jharkhand, optimistic revenue projections may limit the state govt’s ability to fulfill the promises.
Haryana has seen good growth, keeping its deficit within limit in recent years. Inclusive development, fixing unemployment, bridging rural-urban inflation gap should be new govt’s priorities.
The full budget retains focus on fiscal consolidation. In her budget speech, finance minister mentioned the intent will be to fix fiscal deficit with debt-GDP ratio on a declining path.
A bad turn in Venezuela would raise the same questions that have dogged the unlawful US strikes against alleged drug boats in the Caribbean: Why now, and why at all?
The latest comment comes as New Delhi and Washington have yet to sign a trade agreement. India’s purchase of Russian oil has reduced, but Moscow remains top source for crude.
If deal goes through, Greece will be 2nd foreign country to procure vehicle. Morocco was first; TATA Group has set up manufacturing unit there with minimum 30 percent indigenous content.
Many of you might think I got something so wrong in National Interest pieces written this year. I might disagree! But some deserve a Mea Culpa. I’d deal with the most recent this week.
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