If the Centre and states are keen on spending more to meet the COVID-19 challenges in the coming year, they must bear in mind the need to raise more resources through taxes and non-tax revenues, suggests A K Bhattacharya.
The government may be staring at a modest slippage in fiscal deficit for 2022-23 (FY23), with the Ministry of Finance seeking parliamentary approval for additional spending through a second and final tranche of supplementary demands for grants. On Monday, as the Budget session of Parliament resumed, Finance Minister Nirmala Sitharaman sought Parliament approval for additional gross spending of Rs 2.7 trillion in FY23 (which ends on March 31). While net cash outgo is pegged at Rs 1.48 trillion, the rest will be matched by savings or enhanced receipts, the finance ministry said.
India is set to add 10,000 budget hotel rooms in the next two years in response to the burgeoning demand for low-cost accommodation across the country.
The Budget estimate of 2009-10 includes a sum of Rs 35,000 crore as expected revenue from auction of 3G spectrum, finance minister Pranab Mukherjee said in Budget papers.
The states will be able to raise additional open market loans of about Rs 21,000 crore (Rs 210 billion) in the current year, according to the 2009-10 Budget estimates presented on Monday. According to Budget estimates of 2009-10, the states' share of taxes and duties is expected to increase to Rs 1,64,361 crore (Rs 1,643.61 billion) against Rs 1,60,179 crore (Rs 1,601.79 billion) in 2008-09.
Though India is one of the fastest growing economies, how big is the country's budget compared to other countries in the world?
Andhra Pradesh Chief Minister K Rosaiah on Saturday presented a tax-free budget for financial year 2010-11 with an outlay of Rs 1,13,675 crore (Rs 1.13 trillion) and a projected expenditure of Rs 1,13,660 crore.
The increased plan allocation from the Centre is expected to help Delhi complete various projects related to next year's Commonwealth Games. The city got Rs 814 crore for projects under the Jawaharlal Nehru Urban Renewal Mission, while Rs 315.82 crore has been proposed for providing basic services to the urban poor. The total allocation also includes Rs 1,129.82 crore given to the city under urban infrastructure development for small and medium towns.
M Govinda Rao hopes the Budget will contain the deficit while continuing to create conditions for pushing growth.
The finance ministry on Friday withdrew expenditure curbs on various departments and ministries imposed in June in the wake of the COVID-19 second wave, reflecting improvement in public finances and the urgency to step up growth.
Under the 11th Five-Year Plan (2007-12), Rs 550 crore (Rs 5.5 billion) was provided for promoting exports through Market Access Initiative scheme.
Nirmala Sitharaman is proving to be a better finance minister than her initial rookie status might have led people to expect, observes T N Ninan.
High crude oil prices in 2008 have left the government richer by a few thousand crore rupees. In 2008-09, the government earned "windfall profits" from the petroleum sector as crude oil prices spiked, touching a high of $147 in July 2008.
Goyal is expected to discuss the targets for the banks for 2019-20, as well as priority sector lending, recovery on non-performing assets, and the bankruptcy proceedings of various companies, which owe money to the banks.
Because of the economic slowdown, the actual corporation tax collection in 2012-13 was at Rs 3,56,326 crore (Rs 3,563.26 billion), up 10.4 per cent year-on-year as against 15.6 per cent estimated in the Budget.
Benchmark indices closed higher on the last day of August, amid volatile trading session led by FMCG and IT shares.
For first time in 8 yrs, stake sale proceeds could exceed Budget Estimates. ONGC's acquisition of HPCL alone could get the exchequer more than Rs 30,000 crore.
The Prime Minister's Economic Advisory Council warned of serious fiscal risks from growing off-Budget liabilities, which are estimated at 5 per cent of gross domestic product in 2008-09. This would be much more the budgeted central government deficit of 2.5 per cent of GDP for the year.
The battle on creating jobs is virtually lost. If the battle for achieving higher growth too is lost, then its political consequences could become difficult to manage, says A K Bhattacharya.
Concerned by GDP slowdown and unrealistic tax targets, the economists urged Finance Minister Nirmala Sitharaman to implement long-term structural steps like land and labour reforms. Warning against any off-Budget financing the economists said the government should prepare a statement of intent for its social, rural and welfare sector expenditure.
Experts recommend awaiting the findings of the 2021 Census, which is yet to be conducted, before introducing population control policies.
The Budget refers to the 'Annual Financial Statement', laid before both the Houses of Parliament (Lok Sabha and Rajya Sabha).
The finance ministry plans to work out its borrowing calendar.
The service conditions and judges' remuneration are not alluring .
'Given the 50 per cent or thereabouts increase in borrowing that has been announced, it is a reasonable estimate to say that at this time, an increase of 1.7-1.8 per cent on the 3.5 per cent budgeted fiscal deficit target is being anticipated,' Chief Economic Adviser Krishnamurthy Subramanian said on Friday.
The government plans to raise resources to finance capital spending beyond the Rs 3.10 lakh crore budgeted for 2017-18 through higher borrowing or divestment receipts.
The Budget for 2018-19 has at least five takeaways that are yet to receive adequate attention, says A K Bhattacharya.
Budget announcements will come right before five states, with population of around 250 million, go to polls.
Pencilling in a GDP growth in third and fourth quarters, SBI Research on Wednesday revised its contraction forecast for the current fiscal year to 7 per cent. The agency had earlier forecast a 7.4 per cent contraction in 2020-21 GDP numbers. In April-September, the economy contracted 15.7 per cent but the second half may see a surprise 2.8 per cent growth, if the SBI analysis turns out to be correct.
Billed as the first exercise of its kind in demystifying the process of drawing up Budget, Andhra Pradesh on Wednesday made public the draft Budget for 2003-04 that earmarks over 40 per cent of total allocations to irrigation and power.
Fiscal deficit in the first four months of 2012-13 stood at 51.5 per cent of the budget estimates -- slightly better compared to 55.4 per cent in the same period a year ago -- according to Controller General of Accounts (CGA) data released on Friday.
A well-established tax system would have a predictable buoyancy - how fast the collections grow as a proportion to the growth of the economy. But that is not the case with GST. It is still undergoing substantial changes as the government responds to structural as well as administrative glitches.
Central Board of Direct Taxes officials claim the figure has surpassed indirect taxes for the first time.
While the likelihood of these states going the Lanka or Greece way may be an alarming assessment, the financial situation of some states such as Punjab and West Bengal is indeed quite weak.
As part of the plan, government departments may have to surrender the unspent project-linked component of the Rs 70,000-crore (Rs 700-billion) additional gross Budgetary support at the end of the financial year.
The July-September quarter results of software companies in the engineering research and development (ER&D) segment were broadly in line with expectations, though there have been cuts in revenue growth guidance. While results were a mixed bag, and there are cautionary views on the near-term outlook, brokerages and global consulting firms highlight the strong growth trajectory for the sector. They expect this segment of the software sector to grow by 8-12 per cent going forward.
The Union Budget for 2009-10 presented by the finance minister is on predictable lines. Surely, the finance minister has done a fine balancing act of giving a thrust to growth while trying to contain fiscal imbalance.
