Skip to main content

Q1 Fiscal Deficit at 68.7% of 2018-19 Budgeted Target

By
Improvement over 80.8% in year-ago period even as concerns rise that govt may not be able to meet target of 3.3% of GDP
India’s fiscal deficit at the end of the first quarter of the current financial year was 68.7% of the budgeted target for 2018-19, better than 80.8% a year ago. The data comes amid growing concern that the government may not be able to meet the target of 3.3% of GDP, with the recent cuts in goods and services tax (GST) causing revenue loss while the national health protection scheme and the minimum support prices (MSP) to farmers could add to spending.
“Notwithstanding the mild improvement in the fiscal deficit in Q1 FY19 relative to the year-ago level, various fiscal concerns persist, including whether the budgeted targets for GST revenues, dividends and profits and disinvestment would be realised, and whether the outlays required for revised MSPs, the national health protection scheme, fuel and other subsidies, and bank recapitalisation would prove to be adequate,” said Aditi Nayar, principal economist at ICRA. Last month, the GST Council had approved further rationalisation of the tax regime, moving more items from the 28% slab to 18%.
International ratings agency Moody’s pegged revenue loss from the tax cuts at 0.04%-0.08% of GDP annually, calling the cuts credit negative. “Although the proportion of revenue loss is small, the vacillation in tax rates creates uncertainty around government revenue and comes amid persistent upside risks to its expenditures,” Moody’s said in a note on Monday. Driven by a sharp rise in indirect tax collections in April-June 2018, gross tax revenues were up 22% in the quarter to June while net tax revenues rose faster at 34%. There was a modest growth in direct tax as corporate tax collections were lower in the quarter compared with the year-ago figure.
Non-tax revenues were up 39.1% from that a year ago. The lower 6.6% growth in revenue spending allowed the government to rein in fiscal deficit even as capital spending grew at a brisk pace. Capital spending was up 27% in the quarter from a year ago, with roads and railways being the key spenders. Both revenue and capital spending were 29% of their respective budget estimates, with the former higher than last year while the latter being lower at the same point. Disinvestment receipts during the quarter were Rs.8,760 crore against Rs.7,690 crore a year ago.
The Economic Times, 1st August 2018, New Delhi

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more