States are increasingly borrowing to finance subsidies. This reduces fiscal space for capital and other developmental expenditure, compromising long-term growth.
In a new report, RBI data shows subsidy payments are being concentrated among fewer states, with Tamil Nadu in particular seeing a sharp rise in its share of total subsidies.
Siddaramaiah govt says income tax payers, govt employees shouldn’t have BPL cards, but data shows nearly 8 in every 10 of state’s residents claim benefits, 'burdening' the economy.
15th Finance Commission recommends fiscal deficit limit of 3% for states. According to Maharashtra's budgeted estimates for 2024-25, fiscal deficit is projected to be at 2.59%.
On latest episode of ThePrint Off The Cuff, former IMF executive director asserts that lack of important indices such as Census & Consumer Survey has resulted in India lagging behind in data.
Last 20 years' data shows capex share in spending has risen since 1st term of Modi govt in 2014-15 & that of subsidies has dropped. Under UPA between 2004-2014, subsidies rose while capex fell.
In 1st batch of its supplementary demand for grants, Centre also emphasises that another Rs 70,968 crore of additional spending will be financed through reallocation between schemes.
Since her first budget in 2019, Finance Minister Nirmala Sitharaman's approach is notable for growing realism, but she must bite the bullet on subsidies which ballooned in Covid years.
An economic environment made up of ruthless taxation structure, corrupt government systems and public sector enterprises drain the economy, writes Shantha Kumar.
Industry says manufacturers have 2-4 weeks of buffer stocks, but prolonged disruption could push up shortage risks, especially of consumables like IV and syringes.
French newspaper La Tribune earlier last week indicated that UAE withdrew from deal to fund EUR 3.5 billion. India is looking to order 114 new Rafales, which could include the F5.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
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