Source: Livemint Relevance: A lesson from the 2008 global financial crisis that can help India tackle post-pandemic situation better Synopsis: Aggressive lending to MSME sector can result in a NPA problem in the future. Contents1 Background2 Present situation – impending problems3 Impact of lending to MSMEs4 Shortcomings of credit schemes Background Response to 2008 financial… Continue reading Behest lending can give rise to a NPA problem
Tag: Fiscal deficit
India’s debt-to-GDP ratio at a 14-year high
Relevance: Present situation of India’s economy, dealing with a high debt burden and an increased Fiscal Deficit. Synopsis: High Fiscal Deficit, a very high Debt-to-GDP ratio and a high amount of external debt have raised concerns over debt sustainability. Few concerns and possible solutions. Contents1 Rise in Fiscal Deficit & Debt-to-GDP ratio 2 Why Fiscal Deficit… Continue reading India’s debt-to-GDP ratio at a 14-year high
Explained:About India’s fiscal deficit
News:Recently,former Economic Affairs secretary has claimed that the actual fiscal deficit for the last financial year and the current one is more than a full percentage point higher than the official data. Facts: What is Fiscal Deficit? Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure.… Continue reading Explained:About India’s fiscal deficit
Explained: Why state budgets matter
News:The Reserve Bank of India (RBI) has released its annual study of state-level budgets. Facts: Highlights of the study: The study has found that except during 2016-17,state governments have regularly met their fiscal deficit target of 3% of GDP. However,most states ended up meeting the fiscal deficit target not by increasing their revenues but by… Continue reading Explained: Why state budgets matter
Fiscal deficit crosses 77% of annual target in July
According to data released by the Controller General of Accounts(CGA), India’s fiscal deficit has reached 77% of the annual target for 2019-20 in July. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues. In Union Budget 2019,India has set… Continue reading Fiscal deficit crosses 77% of annual target in July
Why lower fiscal deficit isn’t always good news
According to the data,there is growing concern about the slowdown in India’s economic growth.Recently,RBI had also cut repo rates by 35 basis points, which was the sharpest cut in nine years. In macroeconomy,there are two components.One is the structural or the permanent component which is largely determined in the long term by factors such as… Continue reading Why lower fiscal deficit isn’t always good news
Budget Briefs: Fiscal deficit target revised downwards to 3.3%
Finance Minister has announced the fiscal deficit target for 2019-20 at 3.3% of GDP from 3.4% set in the Interim Budget presented on February 1, 2019. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues. The main reason for… Continue reading Budget Briefs: Fiscal deficit target revised downwards to 3.3%
SC to hear petition to end write-offs
A petition has been filed in the Supreme Court to restrain banks from writing off non-performing assets(NPAs) and governments from waiving off farm loans. The petitioner has said that Supreme Court should (a)restrain banks from writing-off of NPAs so that exact financial conditions of the banks can be shown(b) The Centre and state governments should… Continue reading SC to hear petition to end write-offs
States overall deficit set to decline in FY20: Economists
State Bank of India(SBI) Economists has said that states have managed to contain the fiscal deficit at the aggregate level for FY20.All the states have projected a decline in fiscal deficit next year,except Odisha,Assam and Uttarakhand.Despite the increase,these three states are keeping the fiscal deficit below 3%. The factors that helped in reducing fiscal deficit… Continue reading States overall deficit set to decline in FY20: Economists
Fiscal deficit in Jan. at 121.5% of full-year target
According to the data released by the Controller General of Accounts, Centre’s fiscal deficit touched 121.5 per cent(7.70 lakh crore) of the budgeted target of Rs 6.34 lakh crore for 2018-19 due to lower revenue collection. Fiscal deficit is the amount of money that the government needs to borrow in a given year because their… Continue reading Fiscal deficit in Jan. at 121.5% of full-year target
