Fiscal Stimulus

A fiscal stimulus, a ratings upgrade on one side, facing off against global uncertainty, tepid earnings growth, expensive valuations and selling FIIs. Which side holds the upper hand is the question

Central government spending will be a tailwind for the economy in Q4 FY22

The concern, though, is that bond yields are rising, which is why the fiscal stance in the forthcoming Union Budget is likely to be conservative

The priority now must be vaccination, not a fiscal stimulus

Government support by way of credit guarantees and food and fertiliser subsidies is the right policy, till the masses are vaccinated 

Interview | Job creation through MGNREGA more effective in raising consumption than temporary direct income support : CII President T V Narendran

On the demand for fiscal stimulus to reinvigorate the domestic economy, CII is not asking for a big check for industry, Narendran told Moneycontrol. Instead, the stimulus should be directed towards economic revival through GST rate cuts and support for those sectors seeing highest volume of job shedding, he said.

Government should provide Rs 3 lakh crore stimulus to shore up demand: CII president Narendran

Narendran asked the government to infuse another Rs 20,000 crore in public sector banks and also suggested a national pandemic fund to guard against financial risks arising out of such events.

EXCLUSIVE | Surprised at RBI cutting estimates, still see double-digit growth: Niti Aayog's Rajiv Kumar

In an interview with Moneycontrol, Kumar said that a fiscal stimulus is needed to 'revive animal spirits' of the economy, but added that direct income support would not be the way to do it. “You might see that in the third quarter, people who have reduced their estimates today will be revising them upwards again,” he said.

COVID-infected economy needs a cash jab

Stimulus measures can boost consumption, build the base for durable growth and help set the course for a lower fiscal deficit, going forward

Moneycontrol Pro Panorama | Does India need a second fiscal stimulus?

In today's edition: the second wave’s impact on the economy, a blueprint for vaccination success, a hidden gem in the cement sector, China’s impact on gold prices and more

When is stimulus too much for markets?

The liquidity surplus raises interesting questions as to whether the beneficial result for markets will compound or, instead, involve volatile contradictions requiring careful active management

Budget 2021 boosts confidence in these challenging times

Given the strong intent demonstrated by policymakers of late, one remains confident of strong fiscal-monetary co-ordination in the coming months to pre-empt any undue pressure on interest rates 

Budget 2021 opts for investment, not consumption, boost

Food subsidy is projected to go down sharply from the current levels

Bond investors turn eyes towards RBI after record borrowing plan

Investors hope the RBI will support bond prices after record borrowing programme was unveiled by Finance Minister Nirmala Sitharaman

Farmers' agitation less about content of farm laws, more about lack of trust: Economist Abhijit Banerjee

On the issue of loan moratorium, Abhijit Banerjee said that country's policymakers, the Reserve Bank of India (RBI) in particular, had worked towards ensuring that the banks don’t collapse.

Global liquidity trap requires a big fiscal response

Central banks have taken unprecedented steps, but now demand needs a lift

Interview | There are still certain sectors which may require some interventions, says Finance Secretary Ajay Bhushan Pandey

The Narendra Modi government is now focused on sector-specific interventions, and is speaking to stakeholders across the board as it prepares its next set of stimulus announcements, Finance Secretary Ajay Bhushan Pandey told Moneycontrol in an interview.

Open to further stimulus, assessing impact of the COVID-19 pandemic on FY21: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman also said the Centre would come out with fresh growth and budgetary estimates for the COVID-19 pandemic-hit 2020-21.

Interview | Government recognises this is time for fiscal measures: CEA Krishnamurthy Subramanian

"If you look at international evidence during times of crises, government spending is really crucial, because both consumption and investment which comes from the private sector, go down,” CEA Krishnamurthy Subramanian said.

Exclusive | Government set to announce fiscal stimulus package ahead of festive season

Centre weeks away from announcing measures aimed at boosting demand and creating jobs. Plans include an urban job scheme and a massive infrastructure push.

A case for fiscal intervention | Story behind credit numbers

Recent data shows that although the government keeps announcing that banks have allotted large shares of money on the lines of packages, this doesn't reflect in the aggregate credit growth numbers. That builds a case for direct fiscal intervention

Lower tax may not be bait enough to spur consumption

Future fiscal measures must aim at creating more job/income opportunities

Chart of the Day | Asia’s fiscal stimulus response to COVID-19

Emerging countries in Asia needed a strong fiscal stimulus to counter the pandemic’s effects. Governments in Asia have come up with different economic responses to tackle the COVID-19

Forget fiscal boost -- Government expenditure fell in May

Revenue receipts of central government in April-May less than a third of the same period last year

75 percent of stimulus package is liquidity boosts and guarantees for banks. Will lenders play ball?

Banks’ reluctance to lend to sectors perceived as risky is unlikely to see a big change following the FM’s announcements

Privatisation is a capital idea but won’t be an easy sell

Privatisation can be a cure not just for the government’s finances but for the companies too. The devil lies in the execution.

BIG STORY | Will liquidity infusion of Rs 90,000 crore help discoms?

In this edition of Big Story, Moneycontrol's Sakshi Batra shares her insight on the capital infusion of Rs 90,000 crore announced by the government.