
Sharp spike in Centre's fiscal deficit in Feb at 82.7% of FY22 target
The spike in the deficit number is majorly due to the transfers made to the states in the month of February.
The spike in the deficit number is majorly due to the transfers made to the states in the month of February.
From insisting on a debt-to-GDP ratio of 60% and fiscal deficit of 3% for decades, the IMF is now advocating a rethink considering both pre and post-pandemic changes in ground realities.
The Centre earned only ₹12,037 crore from offloading equity holdings, merely 15% of the budgeted disinvestment target of ₹78,000 crore for FY22.
Finance minister has gone for a sharp rise in capital expenditure to get the economy going while cutting down on subsidies and some social sector schemes.
The assessment of the current year's fiscal position is a strong indication of the growth push the government is likely to provide for the next year.
The fiscal deficit for FY22 is likely to be in the region of 6.3-6.4% against the initial estimate of 6.8%, thanks to a pick-up in economic activity after the second wave of Covid.
The survey has cautioned on the "uncertain" global environment on account of a new Covid-19 variant.
Union Budget this year will take the process of normalisation started in FY22 forward, with the target to bring fiscal deficit down to 4.5% of GDP by FY26.
The country is expected to meet its fiscal deficit target in the ongoing financial year, says SBI Research
Ahya recommends a dedicated fund to be created out of the divestment receipts that should be deployed only towards infrastructure expenditure.