Government Spending

Elon Musk, alongside President Donald Trump, called for basic controls at the U.S. Treasury on February 11, criticizing the federal bureaucracy for enriching its members at taxpayers' expense. Musk emphasized that elected officials should make decisions on agency actions, rather than unelected bureaucrats. This statement came after a U.S. district judge ruled on February 8 to block Musk's Department of Government Efficiency from accessing Treasury's payment systems, halting his cost-cutting efforts aimed at reducing government spending. The judge clarified that the order does not affect Treasury Secretary Scott Bessent’s ability to access these systems. Musk’s push for reform continues, highlighting his concerns over the growing influence of unelected officials in federal agencies. His comments in the Oval Office with President Trump intensified the debate about the role and power of the bureaucracy in shaping government policy and expenditures. The legal ruling has sparked further discussions on government efficiency and accountability.

Healthcare sector experts urge govt to boost spending, infrastructure, innovation in upcoming Budget

Expressing his views, Dr Girdhar Gyani, director general of Association of Healthcare Providers - India (AHPI), said, "Increased government spending is necessary to address emerging health threats and achieve universal health coverage."

What budget allocations tell us about the government’s spending priorities

There has been a decisive shift in favour of infrastructure building and capex, instead of emphasis on social sectors and subsidies during the UPA years

Infra space may replicate 2003-07 boom, last for 4-6 years: Vijay Kedia

The matket expert is bullish on the infrastructure sector which is riding on the crest of increased government spending and igniting private capex.

Budget 2023: Tepid rural allocations unlikely to derail farm inputs demand

Rural spending as a percentage of GDP is projected to come down from 1.4 percent in FY23 to 1.3 percent in FY24

HG Infra Engineering: Robust growth play, diversification set up pitch for rerating

More order wins, monetisation of assets to create liquidity buffer and improved execution will help this construction major

The PM is right, India’s government spending is too high 

India’s govt revenues/GDP ratio for its level of per capita income is all right; it’s the govt expenditure that is the problem

Govt releases Rs 34,847 crore under rural employment scheme so far in FY23

The Centre has allocated Rs 73,000 crore for the rural employment guarantee scheme for the full financial year that ends on March 31. The ministry is committed to make necessary funds available for the programme.

Budget 2022 | Much to frown upon beyond middle class' disappointment

The budget left those hoping for some tax relief hanging. But what of those who truly needed more relief in these difficult times?

Budget 2022: Has the government changed its spending priorities?

As a percentage of total expenditure in the Budget, the allocations to the Ministry of Health and the HRD ministry have both gone down. Instead, the share of spending on infrastructure has gone up

What has the central government been spending on?

Almost half the central government’s expenditure has been on relatively inflexible items such as interest payments, defence, police and transfers to states, expenditure, leaving little available for development 

Q1 GDP data | Private consumption rises sharply but still below pre-Covid levels, government spending down

As compared to Q1 of FY21, household consumption rose 19.35 percent in the April quarter, but still remained 11 percent lower than what it was two years back in Q1 FY20. On the other hand, spending by the government fell 4.77 percent in the latest quarter.

Govt’s infra focus can aid capex recovery, fiscal support key

An analysis of the order announcements by industrial firms and contract awarding agencies by Investec Capital Services shows healthy ordering activity in the June quarter

India FY21 GDP data: Major decline in private consumption even as government spending grows

Household consumption fell by a significant 9.1 percent in FY21 as compared to a 5.5 percent rise in FY20. However, public expenditure by the government rose 2.91 percent in FY21, much slower than the 7.88 percent rise seen in FY20.

Chart of the Day | In the midst of pandemic, central government spending boost missing in action

Ministries that spent more: rural development, agriculture, health; spending lower in defence, education, women & child development

Chart of the Day | The central government boosted spending in the June quarter in spite of the pandemic

Lower revenues and higher expenditure led to a much higher deficit, supporting growth

Macro Matters | How government spending has propped up economic growth since demonetisation

Growth in the private sector has been lower, sometimes much lower, than what the headline numbers indicate

Govt spending helped bring liquidity into money markets: L&T Fin

Non-tax revenue is going to help reduce the overall extend of revenue deficit. She hopes most of it would go into capital expenditure.

Slow rural recovery even if Budget makes 'rural noises': CLSA

Rural recovery needs construction activity uptick and more so property sector revival, which does not appear likely in CY16, says CLSA

Retail preferring stocks to realty as valuation good: I-Pru

In terms of further earnings downgrade on the back of disturbing global news, Manish Gunwani, senior fund manager at ICICI Prudential AMC believes there may be some downgrades of 1-2% here and there at the margins.

Earnings surprises to continue, Nestle resilient: Raamdeo

What stood out for Raamdeo Agrawal this earnings season is the margin expansion on the back of commodity price collapse.

Are we into an enduring economic recovery?

Unless the economics of investments are meaningfully achieved, it will not be easy to arrive at a convincing judgement of economic turnaround just on the basis of speedy approvals of projects, some cuts in rates and boosting government allocation.

Can't let deficit fears stop investments: Geithner

Americans can't let fear of deficits stop necessary government spending, US Treasury Secretary Timothy Geithner said on Wednesday.

US corporate profits fall, jobless claims up

US corporate profits contracted in the first quarter for the first time in more than two years and the economy grew at the same pedestrian pace as previously estimated, government data showed on Thursday.

Finance Minister introduces pension bill in parliament

The finance minister introduced a long-awaited pension bill in parliament on Thursday that would pave the way for private players in the sector and help cut government spending.