Since 2016, the govt has tried various fiscal tactics to stimulate growth, from increasing expenditure to introducing welfare schemes. The tax cut is the latest of these measures.
In Episode 1597, Editor-in-Chief Shekhar Gupta discusses NITI Aayog's latest Fiscal Health Index report, how states are doing & and other key takeaways.
India has a large vertical fiscal gap, which has been increasing. The reason is that while the Constitution assigns the most buoyant taxation powers to the Union, it allocates more spending responsibilities to the states.
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.
Depositors seem to believe that public sector entities will not default. There is a perception that they are guaranteed by their respective state government or ultimately the Union.
After dominating India’s crude imports since 2023, Russian supplies slowed amid US sanctions, but a 30-day ‘waiver’ amid West Asia tensions could now push flows back towards 2 mbpd.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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