In the current fiscal year, tax and non-tax revenue collections could take a hit. The projections will need to be recalibrated in light of the uncertain environment.
Both the government and the RBI are currently so focused on their respective targets that they are losing sight of the fact that some flexibility might actually be a good thing.
Instead, govt will use ratio of govt debt-to-GDP as anchor for fiscal policy, Somanathan said. Historically, India has targeted fiscal deficit of 3% of GDP but failed to achieve it.
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.
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.
India's fiscal deficit in the first seven months of the FY ending in March 2024 was $96.86 billion, or 45% of the estimate for the whole year, according to official data.
Earlier in a statement, the rating agency said the narrower fiscal deficit underscores the Modi government's commitment to longer-term fiscal sustainability.
Nirmala Sitharaman said the government will aim to have strong public finances and a robust financial sector for the benefit of all sections of society.
Govt had set ambitious target of Rs 1,75,000 crore in Union Budget, with over a third of receipts targeted from the listing of Life Insurance Corporation and privatisation of BPCL.
The victory at Basantar exemplified the sterling character of Lt Gen Hanut Singh. His regiment, Poona Horse, rose to the moment under his command and accomplished the mission.
November exports to the US saw 10% growth from the previous month. Overall, in the first 8 months this fiscal, the merchandise exports to the US touched has touched $59bn.
Of the total package, $649 million will be utilised for additional hardware, software, and support services, and the remaining for Major Defence Equipment (MDE).
Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.
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