Skip to main content

India’s fiscal deficit up to February was 20% more than the revised estimates for FY18

By
India’s fiscal deficit up to February was 20% more than the revised estimates for FY18
 India’s fiscal deficit up to February was 20% more than the revised estimates for FY18 because of increased expenditure and subdued revenue receipts. Experts say that nontax revenues would now be crucial if North Block were to meet its FY18 fiscal-deficit target."The extent to which the nontax revenues can be shored up in March 2018 would crucially determine if the actual fiscal deficit for FY2018 breaches the revised estimate of Rs 5.94 lakh crore," said Aditi Nayar, principal economist, ICRA.
In the revised estimates for FY18, finance minister Arun Jaitley had in the budget presented on February 1estimated a fiscal deficit of 3.5% of GDP against the initial assessment of 3.2% of GDP.Fiscal deficit for FY19 is budgeted at 3.3% of GDP.Fiscal deficit in the April-Feb period stood at Rs 7.15 lakh crore, exceeding the revised target of Rs 5.94 lakh crore for the entire 2017-18 fiscal, as per data released by the Controller General of Accounts (CGA).
The monthly account until February-end revealed that the government has collected Rs 12.83 lakh crore revenue, which is 79.09% of revised estimates.Of this, over Rs 10.35 lakh crore is collected from taxes, while over Rs 1.42 lakh crore and Rs 1.05 lakh crore accrued on account of nontax revenue and non-debt capital receipts, respectively.
Tax revenues are the highest in March. The government is expected to meet the target.Non-debt capital receipts consist of recovery of loans of Rs13,301 crore. Besides, Rs 92,493 crore has been mopped up through PSU disinvestment until February-end. In the revised estimates for 2017-18, the government had raised the disinvestment target to Rs 1lakh crore, up from Rs 72,500 crore in the Budget estimates.
The government also expects more dividend from the Reserve Bank of India, which should lift the non-tax revenues.Total expenditure incurred by the government during the period was more than Rs 19.99 lakh crore, which is 90.1% of the revised estimates for 2017-18.
The Economic Times, New Delhi, 29th March 2018

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more