INDIA BUDGET GAP
Union Budget 2024: Govt mulls doubling number of AB-PMJAY beneficiaries, insurance amount
Budget 2024: The government plans to double Ayushman Bharat's beneficiary base over three years, starting with those aged 70 and above. Insurance coverage may increase to Rs 10 lakh per year, potentially costing an additional Rs 12,076 crore annually. These proposals might be announced in the upcoming Union Budget, enhancing healthcare accessibility and financial protection.
Budget 2024: Top three moves that NDA govt must consider for employment generation
Budget 2024: Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on July 23 in Lok Sabha, kicking off the parliamentary session running from July 22 to August 22. The upcoming budget under the NDA government is anticipated to prioritize sustaining economic growth, promoting job creation, and adhering to fiscal deficit targets.
Budget 2024: Savings account interest up to Rs 25,000 may get tax exempt
The government is examining a proposal to increase the tax-deductible amount on savings account interest to Rs 25,000. Current limits are Rs 10,000 (Section 80TTA), Rs 50,000 for seniors (Section 80TTB), under the old tax regime. Banks have been advocating for incentives on deposits due to rising concerns over the increasing credit-deposit ratio.
Market can only go up now irrespective of Budget. Here's why
The Street has discounted the defence manufacturing stocks too much into the future. Even the earning visibility has been discounted. It is a fast-moving train; it does not make sense to get onto that train at this point. There are many choices when it comes to rural play – two-wheelers, fertilisers, pesticides and M&M, says Dipan Mehta.
Union budget 2024: Making a case for sustainable agrarian practices and inclusive growth
Budget: Modi's recent focus on PM-Kisan Samman Nidhi aimed to support farmers. The upcoming Union budget may lean towards populism, highlighting the exclusion of tenant farmers in schemes like PM-Kisan. Challenges such as irrigation and labour shortages limit productivity, emphasizing the need for sustainable practices.
Not politics, not interest rates: India's surging economy at risk from water
India is facing a growing water crisis, with the country's growing water stress potentially impacting its growth. The country's growing water stress could affect agricultural production and industrial operations, leading to food inflation and declines in income for affected businesses and workers, especially farmers. Contaminated water kills about 200,000 Indians each year, and the government is focusing on conserving the resource, recycling waste water, and reducing the country's over-reliance on the annual monsoon, especially in the agricultural sector.
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How is the Budget prepared: Insights and expectations for this year
The Indian Union Budget preparation is a meticulous process overseen by the Ministry of Finance (MoF), involving NITI Aayog and other ministries. It begins around August-September, culminating in the February 1 presentation, in a non-General Election year. Defined by Article 112 of the Constitution, it forecasts revenues and expenditures, balancing fiscal prudence with developmental goals through circular issuance, revenue scrutiny, stakeholder consultations, allocation decisions, and the symbolic Halwa Ceremony.
Union Budget 2024 date and time; Check the common FAQs, answers to budget related questions here
Budget 2024: India’s Finance Minister Nirmala Sitharaman will present the Budget for 2024-2025 in late July amidst global uncertainties and conflicts. Business leaders have called for reduced income taxes, increased capital expenditure, and measures to control food inflation. Emphasis is also on bolstering infrastructure and the MSME sector to sustain economic growth.
Union Budget 2024: Here is how revenue, fiscal and primary deficit impacts the Indian economy
Union Budget 2024: A revenue deficit arises when a government's day-to-day expenses surpass its total revenue receipts, necessitating borrowing, divestments, or adjustments in taxes to bridge the shortfall. In contrast, a fiscal deficit occurs when government expenditure exceeds its total receipts, influencing aspects like economic growth, price stability, production costs, and inflation.
A weaker Modi government will slow India's fiscal tightening, Moody's says
Indian PM Modi's narrower election victory limits aggressive fiscal reforms, per Moody's analyst Christian de Guzman. BJP secured 240 seats, with NDA totaling 293. Despite this, fiscal consolidation will persist, but populist spending risks increase. India's fiscal deficit target is 4.5% by 2025/26. Bond yields surged post-election, and Moody's sees stable economic prospects.
New govt may cut FY25 fiscal deficit target amid robust growth and windfall RBI dividend
In the interim budget in February, the government had set the FY25 fiscal deficit goal at 5.1% of GDP and revised the FY24 target to 5.8%. However, the actual fiscal gap for FY24 was contained at 5.6%. With exit polls projecting Prime Minister Narendra Modi to retain power with a strong majority, policy continuity is expected, and the government may aim to further improve the fiscal deficit target for the upcoming fiscal year starting April 1, 2025.
At 5.6% of GDP, FY24 fiscal gap beats target
In absolute terms, the FY24 fiscal deficit stood at ?16.54 lakh crore, down from the revised estimate of ?17.35 lakh crore and FY23 level of ?17.38 lakh crore, showed the official data released on Friday. A lower-than-anticipated deficit in FY24 and a generous surplus transfer by RBI earlier this month make the government's goal of reining in fiscal gap at 5.1% of GDP in FY25 seem more realistic now, experts said.
India's fiscal deficit improves to 5.6% of GDP in FY24, lower than target of 5.8%
India's FY24 fiscal deficit hit Rs 16.54 lakh crore, 95.3% of target. Central government's FY24 fiscal deficit stood at at 5.6% GDP, below 5.8% estimate. Tax receipts surpassed at Rs 23.27 trillion, 100.1% target. Expenditure at Rs 44.43 trillion, 99% target. Capital expenditure at Rs 9.49 lakh crore. Fiscal discipline aims for 5.1% deficit in FY25.
S&P raises outlook for India to positive, affirms rating at BBB-
S&P upgraded India's economic outlook to 'positive' from 'stable', affirming its 'BBB-' rating, the lowest investment grade. Despite elevated fiscal deficit, S&P cited robust growth and fiscal consolidation efforts. India's infrastructure spending and reform continuity bolster growth prospects. Ratings influence borrowing costs, crucial for investors assessing creditworthiness
Xurbian India, bridging the gaps
According to projections for rural and urban productivity, by 2030, urban India will account for 70% of GDP. India targets to become a developed nation with a $26 tn economy by 2047. Rural productivity must grow from 50% of urban productivity today to at least 75%. Also, quality of life across urban and rural India must also transform.
India's FY24 fiscal gap may be slightly better than revised estimates: Official
The central government's fiscal deficit for FY24 is expected to be slightly better than revised estimates, thanks to higher-than-anticipated revenue receipts. Despite slower nominal growth, deficit-to-GDP ratio is estimated to improve. Direct tax revenue exceeded expectations, and expenditure remains on track. The government is prepared to manage potential capital inflows from JPMorgan's inclusion of Indian government bonds in its index.
India's April-January fiscal deficit at Rs 11.03 lakh crore, narrows on-year to 63.6% of revised FY24 aim
India's fiscal deficit for April to January, or the first 10 months of this fiscal year, was at 11.03 lakh crore rupees, equivalent to 63.6% of annual estimates, narrowing from the previous year's 67.8%. The government aims to narrow the fiscal gap to 5.8% of GDP in this financial year from 6.4% a year earlier.
India's lower fiscal deficit target a 'surprise' - ICRA's Nayar
India's budget surprises with lower-than-expected fiscal deficit target, deviating from expectations of a fiscal-centric approach, according to the chief economist of credit rating agency ICRA. The government aims to reduce fiscal deficit to 5.1% of GDP, lower than the expected 5.3%. Gross borrowing is planned at 14.13 trillion rupees, lower than the anticipated 15.60 trillion rupees, as the government plans to repay maturing debt through the Goods and Services Tax compensation fund. The Reserve Bank of India is expected to cut rates in August or October depending on monsoon conditions.
Budget 2024: Sitharaman sticks to the fiscal prudence, lowers deficit target to 5.1%
India aims to narrow the budget gap and reach a fiscal deficit level below 4.5% of GDP by 2025-26. Finance Minister Nirmala Sitharaman has fixed the deficit for 2024-25 at 5.1%, below the revised 5.8% budgeted for 2023-24. The lower deficit target is expected on hopes of strong tax collections and expenditure rationalisation, while relatively lower spending on subsidies will create space for the lower target. India's fiscal deficit for the first nine months of this fiscal year through December stood at Rs 9.82 lakh crore, or 55% of annual estimates.
Budget 2024: India's fiscal deficit to be budgeted at 5.3 pc of GDP in FY25, says BofA Securities
Interim Budget: Finance Minister Nirmala Sitharaman is expected to project India's fiscal deficit at 5.3% of GDP in the upcoming budget for FY25, despite poll pressure. The government will meet its FY24 commitment to reduce the fiscal deficit to 5.9%, BofA Securities said in a note.. This reduction will be achieved through a strategy of capital expenditure driven growth instead of expenditure compression, leveraging digitization-led formalization to improve tax buoyancy and reduce subsidy leakage. The revenue receipts are estimated to grow by 10.5%, with a 10% increase in tax revenue and a 14% jump in non-tax revenue. There will also be a modest increase in divestment proceeds.
Budget's master math on borrowings to pave way for India's ambitions on fiscal gap, growth & G-secs
The upcoming Union Budget for FY2025, a vote-on-account, is expected to provide cues on fiscal consolidation and capex number. The fiscal deficit target for FY2025 is projected to be 5.3% of GDP, leading to a decline in market borrowings. The inclusion of India's G-secs in the GBI-EM Global Index could result in FPI inflows of $18-22 billion. The net and gross market borrowings of the General Government are expected to be marginally higher in FY2025. The softening of Government bond yields could lead to a downward shift in the yield curve, benefiting corporate borrowers and private capex.
India's fiscal deficit for April-December at Rs 9.82 lakh crore, narrows to 55% of FY24 aim
India's fiscal deficit for April to December, or the first nine months of this fiscal year, was at 9.82 lakh crore rupees, equivalent to 55% of annual estimates, narrowing from the previous year's 59.8%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier.
Modi govt's capex thrust key during Budget as pvt investment is still weak: Ex-NITI VC Kumar
Former NITI Aayog vice chairman Rajiv Kumar emphasized the Indian government's need to prioritize capital expenditure in the upcoming interim budget to bridge the infrastructure gap and boost the economy. He expects continued focus on investment and fiscal consolidation in the budget, with the government achieving its targets through improved tax-to-GDP ratios and rising capital expenditure.
Interim Budget may target 5.3% fiscal deficit for FY25: Ind-Ra
Budget 2024: India Ratings and Research (Ind-Ra) stated that the government aims to achieve a fiscal deficit to GDP ratio of 5.3% in FY25. However, it may miss the 5.9% target for FY24 due to a lower nominal GDP growth rate. The government plans to reduce the fiscal deficit to 4.5% of GDP by FY26. Ind-Ra projected a net tax revenue buoyancy ratio of 1.2x in FY25. It also noted a slowdown in capex growth in FY25 and limited scope for revenue expenditure rationalization.
Fiscal Deficit: India's budget gap for April-November at Rs 9.07 lakh crore, narrows to 50.7% of FY24 aim
Budget Gap: India's fiscal deficit for April to November, or the first eight months of this fiscal year, was at 9.07 lakh crore rupees, equivalent to 50.7% of annual estimates, marginally narrowing from the previous year's X%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier.
Interim Budget may have to put India quickly back on fiscal glidepath if it derails
Budget 2024: India Ratings and Research warns that India's fiscal deficit could exceed the targeted 5.9% for FY24 due to increased expenses and lower nominal GDP. The interim budget measures will be crucial to stick to fiscal discipline, which is key for economic stability. India would require improved tax collections and has to meet divestment goals for fiscal prudence.
India's fiscal deficit for April-October at Rs 8.04 lakh crore, narrows to 45% of FY24 aim
India's fiscal deficit for April to October, or the first seven months of this fiscal year, was at 8.037 lakh crore rupees, equivalent to 45% of annual estimates, marginally narrowing from the previous year's 45.6%. The government aims to narrow the fiscal gap to 5.9% of GDP in this financial year from 6.4% a year earlier.
India to stick to fiscal deficit target and consolidation path: S&P Global
Extension of free foodgrain scheme and likely more such expenditure may not put India off the fiscal prudence roadmap, S&P said. The ratings agency also said India’s growth is likely to bounce back again to 6.9% in FY25 and stay around the level till FY27.
India's fiscal deficit for April-September at Rs 7.02 lakh crore, widens to 39.3% of FY24 aim
India's fiscal deficit for the first half of the current fiscal year, ending in September, was 7.02 lakh crore rupees, equivalent to 39.3% of annual estimates, an increase from the previous year's 37.3%. The government aims to reduce the fiscal gap to 5.9% of GDP, down from 6.4% in the previous financial year.
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