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Thursday, October 30, 2025
TopicFiscal deficit

Topic: fiscal deficit

India to move away from fiscal deficit targeting after 2025-26, finance secy Somanathan tells Reuters

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.

Budget 2024: Fiscal deficit target lowered to 4.9% of GDP, markets decline

The target signals the government's intention to remain fiscally prudent despite expectations it may ramp up spending on welfare programs following a weaker than anticipated election victory for Modi.

In tradeoff between fiscal prudence & boosting economy, budget should focus more on demand & jobs

With a favourable macro-fiscal backdrop, the finance minister can use the additional fiscal space to either hasten the path to consolidation or support the sectors with subdued growth.

With Indian bonds now on the global radar, prudent fiscal glide path & checks on volatility become key

Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.

Fiscal deficit for FY24 stands at 5.63%, below govt’s revised estimate of 5.8%

In actual terms, fiscal deficit was at Rs 16.53 lakh crore. According to data released by Comptroller General of India, govt managed to meet the revenue collection target.

Contrary to global trend, govts in India don’t junk fiscal discipline for political gain, shows data

IMF has found that countries going for polls tend to see significant slippages in fiscal targets. Analysis by ThePrint finds India has been bucking this trend over last 20 years. 

‘One of the most fiscally unhealthy states’ — what Centre’s note to SC on Kerala’s finances says

In response to Kerala’s petition, Centre has said the state has performed worse than all-states average on all fiscal indicators, adding that its performance has worsened over time. 

Lower October tax revenue growth & higher spending as 2024 polls near could strain govt finances

With tax revenue not doing as well as needed, govt has few choices before it: reduce subsidy-led revenue expenditure, cut back on growth-oriented capex, or miss its fiscal deficit target.

States spending better, with many prioritising capex. But those dependent on Centre may face stress

Capital expenditure of 23 states grew by 52% in April-September 2023 over same period last yr, but discontinuation of GST compensation, tapering of grants could weigh down some states.

Moody’s retains India’s risk rating & ‘stable’ outlook, highlights Manipur unrest, civil society treatment

Ratings agency kept India’s rating & outlook unchanged, citing Indian economy’s growth, banking success on the one hand versus high debt, fiscal deficit and interest payments on the other.

On Camera

From Durrani to Taliban—How Afghanistan always defeated its enemy with India’s help

Pakistan failed to understand the fiercely independent psyche of the Afghans and Pashtun nationalism, which has dominated politics in Afghanistan since its emergence in 1747.

Karnataka, Telangana, TN, Maharashtra power 40% of services output, pan-India growth uneven—NITI Aayog

Report on India's services sector examines state-level dynamics, maps disparities and suggests ways to tap into the sector’s potential.

India pulled out of Tajikistan’s strategically important Ayni air base in 2022. Here’s why

Tajikistan did not want to extend the lease because of apparent pressure from Russia & China over non-regional military personnel at the air base, it is learnt.

Deepfake on duty: when I asked AI to read Op Sindoor citations

On 21 Oct, a buzz went up that the govt had released full list of gallantry award recipients along with Op Sindoor citations. I put an AI caddy on the job. It took me into a never-ending rabbit hole.