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The fiscal deficit -- difference between Centre's expenditure and revenue - is expected to be in the range of 7-8 percent of GDP in 2020-21. From that, it may gradually come down to 4 percent of GDP by 2025-26. This means that the long-standing medium- term target of 3 percent of GDP, as mandated by the FRBM Act, no longer holds.
Popular Commodities
| Name | Price | %Change | OI |
|---|
30.15 2.25 (8.06%)
Fertiliser stocks fall 1-12% after FM's emphasis on Zero Budget farming
221.15 3.25 (1.49%)
Stocks of cigarettes manufacturers gain 1-2% after less than expected excise duty hike
1500.95 24.70 (1.67%)
Jewellery stocks drop 2-7% after proposal to increase import duty on gold
231.35 2.60 (1.14%)
HPCL, BPCL, IOC fall 5-6% after govt proposes additional excise duty on petrol & diesel
3237.00 3.40 (0.11%)
Govt proposes to reduce promoter shareholdings, over 700 firms to be affected
7554.95 -212.10 (-2.73%)
IndiaMART InterMESH surges 34% to close at Rs 1,302 on Day 1
In a relief for equity investors, LTCG must be completely removed or at least the threshold increased to Rs 3 lakh
The industry expects financial aid and reduction in levies and taxes in the immediate near term to revitalise operations and boost passenger traffic, while in a longer time frame, the government needs to address India’s aviation infrastructure requirements.
Policy measures are also required to revive stranded gas-based projects, given that such projects can be used to meet peak power demand and as a balancing power source in the light of the rising share of intermittent renewable generation
Even if the Government continues with its past policy and does not introduce higher budgetary allocation towards these plans, some incentives or other measures to boost the private investor interest that facilitate more active participation could be expected
A downward revision in cess on crude oil production, from the current level, may help upstream companies improve their earnings in a higher crude oil price regime
ICRA expects budgetary allocations towards the entire agricultural value chain to improve productivity and reduce post-harvest losses, while ensuring adequate realisation for the farmers
For the GoI, a revenue deficit of 3.5 percent of GDP and a fiscal deficit of around 5 percent of GDP in FY2022 may allow enough space for prioritising health expenditure, vaccine rollout as well as capital spending.
Though the GoI as a backstop for capital requirements does add to the comfort of public banks for their regulatory capital requirements, their weak capital position and the inability to raise capital from the markets have much larger consequences.
The automotive industry faced strong headwinds during FY2020 with the slowdown in economic activities during H2 FY2020, exacerbated by the NBFC crisis, which affected demand significantly.
Sunil Duggal is Chief Executive Officer, Vedanta| Vedanta
Tapan Singhel is MD & CEO, Bajaj Allianz General Insurance| Bajaj Allianz General Insurance
Anuj Mathur is MD and CEO, Canara HSBC OBC Life Insurance| Canara HSBC OBC Life Insurance
Vinayak Chatterjee is Chairman, Feedback Infrastructure| Feedback Infrastructure
Isha Chaudhary is Director, CRISIL Research| CRISIL Research
Raman Aggarwal is Co-Chairman, Finance Industry Development Council| Finance Industry Development Council
Dinesh Kanabar is CEO, Dhruva Advisors| Dhruva Advisors
P Satish is Executive Director, Sa-Dhan| Sa-Dhan
Rashmi Saluja is Executive Chairperson, Religare| Religare
Abhay Soi is Chairman, Max Healthcare| Max Healthcare
Aditi Nayar is Principal Economist at ICRA.| moneycontrol
Nirmala Sitharaman Finance Minister| Government of India
Ajay Bhushan Pandey Revenue Secretary
Tarun Bajaj Economic Affairs Secretary
Bajaj has helped shape three `Aatmanirbhar Bharat` sets of relief measures
From reforms to prevent black marketing of COVID-19 vaccine to job creation & more; here's a list of budget expectations from Finance Minister Nirmala Sitharaman
After a shutdown in March, the Indian government started the unlock process from late May-June. After that, the markets saw recovery and record-highs in 2020. Find out what experts predict for the year 2021.
The Centre and Reserve Bank of India (RBI) have together provided a total fiscal stimulus of Rs 29.87 lakh crore until November, as per the FM. Find what Indians want from Budget 2021.
There are two components of expenditure - plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
Direct tax is levied on individuals and corporations for incomes generated by them. For example, income tax, corporate tax.
Fiscal policy is a change in government spending or taxing designed to influence economic activity. These changes are designed to control the level of aggregate demand in the economy. Governments usually bring about changes in taxation, volume of spending, and size of the budget deficit or surplus to affect public expenditure.
This is the gap between the government's total spending and the sum of its revenue receipts and non-debt capital receipts. It represents the total amount of borrowed funds required by the government to completely meet its expenditure.
It is a levy imposed on imports into, and exports out of a country, and are paid by the importer and exporter, respectively.
The Budget impacts the economy, the interest rate and the stock markets. How the finance minister spends and invests money affects the fiscal deficit. The extent of the deficit and the means of financing it influence the money supply and the interest rate in the economy. High interest rates mean higher cost of capital for the industry, lower profits and hence lower stock prices. The fiscal measures undertaken by the government affect public expenditure. For instance, an increase in direct taxes would decrease disposable income, thus reducing demand for goods. This decrease in demand will translate into a decrease in production, therefore affecting economic growth. Similarly, an increase in indirect taxes would also decrease demand. This is because indirect taxes are often partially or completely passed on to consumers in the form of higher prices. Higher prices imply a reduction in demand and this in turn would reduce profit margins of companies, thus slowing down production and growth. Non-plan expenditure like subsidies and defence also affect the economy as limited government resources are used for non-productive purposes.
