Over the years, market borrowings has been a dominant source of financing the Gross Fiscal Deficit. As per RBI records, gross market borrowing of states at Rs 381,980 crore in 2016-17 increased by 29.7 percent over the previous year.
The government is confident of achieving the fiscal deficit target of 3.5 per cent for 2016- 17, the newly appointed Controller General of Accounts (CGA), Anthony Lianzuala, said today.
Calling for more focus on debt-to-GDP ratio, its recommendation for the fiscal deficit for the current fiscal is lower than 3.2 per cent that Finance Minister Arun Jaitley has set for himself in the Budget for 2017-18.
The report recommended fiscal deficit to be cut to 2.8 per cent in 2020-21 fiscal and to 2.5 per cent by FY2023.
Even as the Central finances have improved over the years, the average fiscal deficit for the states has widened to over 3 percent of the gross state domestic product in fiscal 2017 and is likely to stay wide in 2017-18 as well, says a report.
The fiscal deficit was 107.1 percent of the full-year target during the same period a year ago.
Net tax receipts stood at Rs 8.85 lakh crore for the same period and for the month of February the deficit is seen at Rs 41,400 crore against Rs 40,600 crore (YoY).
According to a Finance Ministry report, per capita debt (calaculated on basis of Union Government debt) is at Rs 53,796 as on March 31, 2016, as against Rs 49,270 on March 31, 2015.
Lower commodity prices, especially of oil and gold both have played a big role in pulling up India’s current account deficit (CAD).
While the Total Revenue Receipts (TRR) has been projected at Rs 1,59,363 crore, revenue expenditure was estimated at Rs 1,75,293 crore, "leaving the revenue deficit at Rs 15,930 crore," he said.
The fiscal deficit is a measure of the government‘s annual borrowing. The government borrows because its expenses, like those of a household, often exceed income. It raises loans from the market; issues treasury bills and borrows from small savers.
Finance in their Budget speeches have often quoted poets, saints, economists and litterateurs to buttress a given political social and economic context.
Finance Minister Arun Jaitley presented the economic survey, authored by the chief economic adviser, on Tuesday January 31, 2017. It is an official report on the economy and sets the tone for the Union Budget.
Financial year and assessment year. Financial year (FY) runs from April 1 to March 31 of the next year; assessment year (AY) is the year following the FY. Tax on income earned in an FY is paid during the AY.
It all begins with the finance minister‘s speech in the Lok Sabha. The Budget is then tabled in parliament. Discussions on the economy and broad Budget measures take place without voting. The parliament then breaks for a three-week recess. Parliamentary Standing Committees give reports on ministries‘ estimates or demands for grants.
The exercise to make the Budget is a long-drawn one. It juggles political pressures, economy‘s priorities and utmost secrecy. Budget work begins in August with a circular to ministries and departments. They reply with details of funds they need.
The fiscal deficit for April top January period came at 5.64 lakh crore as against Rs 5.32 lakh crore year-on-year (YoY). The fiscal deficit for the period is 105.7 percent of the FY17 Budget estimate.
"The aggregate fiscal deficit of Indian states is expected to increase marginally to 3.3 percent of gross domestic product (GDP) in FY18 from the forecast of 3.2 percent for FY17," it said in a note.
In its APAC Economic Snapshots, S&P also said that fiscal deficit target of 3.2 percent for the next financial year announced in Budget is "reasonably ambitious".
Even as the Centre has contained its fiscal deficit at 3.2 per cent for FY-18, the states are looking the other way and their gross market borrowings next financial year are estimated to jump by nearly 22 per cent to Rs 4.5 trillion, says a report by rating agency Icra.
Finance Minister Arun Jaitley today said a "realistic" fiscal deficit target of 3.2 percent of GDP has been fixed for 2017-18 and 3 percent for the next year that could be achieved on account of higher tax revenues and disinvestment proceeds.
Affordable housing being given Infrastructure status is a welcome move and will help in the Housing to all by 2022 mission â€“ it is a big and positive move for developers, banks and housing finance companies.
The Budget has a positive tone and is in the right direction. The focus on the infrastructure and manufacturing sector will benefit lubricant manufacturers, since we expect this to boost consumer demand in the B2B and B2C market segments.
The Union Budget has undertaken a fine balance between fiscal prudence and spending by slightly increasing the fiscal deficit target to 3.2 percent of GDP for FY18.