Search Result for : Fiscal Deficit

The Dollar Business Bureau International credit rating agency Moody’s Investors Service said on Monday that India’s Union Budget 2018-19 had struck a balance between growth and fiscal prudence. And a little slippage in the target of fiscal deficit would not have material effect on the overall fiscal strength of the country. In the Budget, presented on February 1 by Finance Minister Arun Jaitley, the Government has revised its fiscal deficit target for 2018-19 to 3.3% of gross domestic product (GDP) from the previous estimates of 3%. The estimate for 2017-18 has also been revised to 3.5% of GDP, from the original projections of 3.2%. “The revised fiscal consolidation path is modestly shallower than the previous road map, but it does not fundamentally alter India's overall fiscal strength,” said ...

The Dollar Business Bureau Guided by mission to strengthen agriculture, employment, rural development, health, education, MSMEs and infrastructure sectors, Finance Minister Arun Jaitley presented the Union Budget 2018-19 in Parliament on Thursday. Reiterating the pledge given by the Government to the people of the country four years ago to give an honest, clean and transparent Government, Jaitley said that the Government under Prime Minister Narendra Modi has successfully implemented a series of fundamental structural reforms to propel India among the fastest growing economies of the world. Jaitley said that India’s agri-exports potential is as high as $100 billion against current exports of $30 billion and to realise this potential, export of agri-commodities will be liberalised. While presenting the Budget, he said, “Indian society, polity ...

By Manishika Miglani The ruling party BJP had made a host of promises during its election campaign such as creating enough jobs and consolidating the business sentiments in the country. Prakash Karat, former General Secretary, Communist Party of India (Marxist), in an interview with The Dollar Business, talks about the current government’s performance on these fronts and also shared his views on the impact and scenario post-demonetisation. TDB: Has the demonetisation move by the Government served its purpose of eradicating black money, stopping terrorism funding and driving India towards a cashless economy? Prakash Karat (PK): The stated intention of the Government for withdrawing Rs.500 and Rs.1000 notes from circulation was to help curb black money, corruption and to stop terrorist funding. But this exercise has ...

By Abin Daya Before we start, just wanted to update on a few activities we are doing currently. The issues pertaining to EDPMS and the resultant caution listing of exporters have got a lot of attention recently. We are working with a number of exporters to resolve the issues that they have had with their bankers on settlement of Shipping Bills on EDPMS, and thereby successfully removing them from the caution list. We are also privileged to work with FIEO, India's apex body of Indian Export Promotion Organisations, to deliver a series of client education workshops to explain the workings of EDPMS, and the common issues that surround settlement of export bills. These workshops have so far been done in Chennai, Madurai and Guntur, ...

By Abin Daya This is the time of the year we close our books, reflect on what has happened over the past 12 months, and make plans for the next year. Same is the case with the government. This week, we bring you a snapshot of public finances, especially the twin deficits, as of Feb 2017, and how we expect the year to end. While both deficit figures have breached the budgeted numbers as of Feb, there is a chance that strong revenue growth in March could help pull them back to below the threshold. Will need to wait for formal data to come from Ministry of Finance to see if that happens. Continuing with an update on last week’s story about Methyl ...

The Dollar Business Bureau "The negative effects of India's demonetisation on economic activity have begun to reverse. However, it is still far from returning to pre-November 2016 trends," a report from S&P Global Ratings revealed. Earlier, the global rating agency had predicted a disruptive impact of the note-ban in rural areas, unorganised sector, and other businesses that run on cash. It had also, like IMF, revised its growth forecast for India to 6.9%, a revision of one full percentage point downwards. IMF has given a worse estimate of 6.6% in 2016-17. This revision by international rating agencies was done to take into account the economic disruption and slowdown caused by demonetisation. The fiscal deficit target of 3.2% for 2017-18, as announced by FM ...

The Dollar Business Bureau The government is expected to achieve its target to reduce fiscal deficit to 3.5% of GDP (Gross Domestic Product) in the current financial year but higher spending on infrastructure will limit the room to cut it further to 3% in 2017-18, credit rating agency Moody's Investors Service said on Monday. The rating agency expects the Indian government to renew its commitment to enhance capital spending and address the impact of demonetisation in the Union Budget to be presented on February 1, 2017.  “On the fiscal front, the government will likely remain committed to achieving its fiscal deficit target of 3.5% of GDP for the fiscal year ending March 2017. However, room to reduce the deficit further to the target of 3% ...

The Dollar Business Bureau  India’s fiscal deficit reached the Rs.4.58 lakh crore mark at the end of April-November period, or 85.8% of the budget estimate for the entire fiscal. The situation of fiscal deficit at November-end this financial year was better as compared to the same period a year-ago when the deficit was 87% of the budget estimate. Fiscal deficit, the difference between revenue and expenditure for the whole fiscal, has been estimated at Rs.5.33 lakh crore, or 3.5% of GDP (Gross Domestic Product), in 2016-17. According to the data released by Controller General of Accounts (CGA), revenue from taxes came in at Rs.6.21 lakh crore, or 59% of the whole year budget estimate of Rs.10.54 lakh crore. During the said eight months period, ...