Fisca Deficit News

Colombia is likely to issue local peso bonds with longer maturities to avoid having too much debt due its 2033 benchmark, according to a top finance ministry official.

World Bank expects India to see 5.4% growth in FY22The World Bank in its report says India’s fiscal deficit will rise to above 12% in FY21 before improving gradually

The agency had recently noted that the fiscal deficit of central and state governments will come at 12.1% with the states contributing 4.5% of it

The centre has increased its borrowing plan by ₹4.2 trillion to ₹12 trillion for FY21 to guard itself against an imminent shortfall in tax collectionsFiscal deficit for FY20 widened to 4.6% of GDP from the revised estimate of 3.8% of GDP due to ₹1.5 trillion shortfall of tax collections

This would mean that the government will have limited space to provide economic relief to businesses and individuals hit by coronavirus crisisIn absolute terms, total receipts of the government were ₹17.5 lakh crore against the estimate of ₹19.31 lakh crore

Wary of widening fiscal deficit, govt plans to reduce capital expenditure to free up fundsThe govt has frozen three instalments of DA for 11.5 mn of its employees and pensioners

Each sector will have to figure out how to phase in manufacturing taking account of developments in the demand side, so that what they produce gets transported and bought; it is interconnected

Monetisation of the deficit is the printing of money to finance government spending

Net tax receipts in the April-January period were ₹9.98 trillion, while total expenditure was ₹22.68 trillion, the data showedEarlier this month, the govt revised the fiscal deficit target for the current financial year that runs through March to 3.8% of GDP from 3.3%, due to weak revenue collection

The Centre could either roll back some investment plans or further slash its consumption outlays