India plans to cut spending to curb deficit; may hurt growth
NEW DELHI: The go nment is likely to reduce spending for the current fiscal year by as much as Rs 2 lakh crore ($27.82 billion) as it faces one of the biggest tax shortfalls in recent years, three go nment sources said.
Asia's third largest economy, which is growing at its slowest pace in over six years because of lack of private investment, could be hurt further if the go nment cuts spending.
But with a revenue shortfall of about Rs 2.5 lakh crore, the go nment has little choice to keep its deficit within "acceptable limits", the first official, who did not want to be named, told Reuters.
The go nment has spent about 65% of the total expenditure target of Rs 27.86 lakh crore till November but reduced the pace of spending in October and November, according to go nment data. A 2 lakh crore-rupee reduction would be about a 7% cut in total spending planned for the year.
In October and November, go nment spending increased by Rs 1.6 lakh crore, nearly half the Rs 3.1 lakh crore it spent in September. The fiscal year starts April 1 and ends March 31.
Lack of demand and weak corporate earnings growth in the economy led to lagging tax collections this year. Analysts said growth will be hurt.
"When the private investment has slowed so much, this will definitely drag down growth further," said Rupa Rege Nitusure, chief economist at L&T Financial.
L&T Financial首席经济学家Rupa Rege Nitusure表示:“当私人投资大幅放缓时，肯定会进一步拖累经济增长。”
India's economic growth slowed for six consecutive quarters to 4.5% in July-September, despite a 135-basis-point cut in interest rates by the central bank since February 2019.
尽管印度央行自2019年2月以来降息135个基点，但印度经济增长连续6个季度放缓，7 - 9月低至4.5%。
Now, even the Reserve Bank of India seems to have become more worried about inflation rising. It kept its key lending rate on hold on December 5, even though it slashed its growth forecast for the current fiscal to 5%, which would be the lowest in a decade.
Even a surprise corporate tax rate cut announced by Finance Minister Nirmala Sitharaman earlier this year failed to spur private investment in the economy.
The go nment is likely to keep the fiscal deficit under 3.8% of gross domestic product, sources said, while letting it slip from its earlier set target of 3.3% for the year.
The go nment is likely to announce additional borrowing of Rs 3,000 crore to Rs 5,000 crore for the current year to match the revised fiscal deficit, two sources in the go nment said.
政府的两位消息人士称，政府可能会宣布本年度新增借贷300 - 500亿卢比，以弥补修正后的财政赤字。
译文来源：三泰虎 http://www.santaihu.com/49148.html 译者：Joyceliu
Late understanding of the fact. We the common men are very much affected. Running our family have become very tough.
Ram Prakash Shroff
Modiji will ensure the Indian Economy is destroyed beyond repair. Modiji will fly abrod.
Only a patriot like Modi can save naition.
You are right. Let's have Chidambaram back.
Ram Prakash Shroff
It is not important who should be next, the most important is to remove the present establishment.
the crux of the problem is a lack of demand due toreduced spending power in the hands of billions of people. reducing taxes for corporates alone will not help boost spending power.
Ram Prakash Shroff
The Country needs a Government who care for AAM ADAMI and not Adani and Ambani. The country needs a PM in the Country to attend to the problem of the Country.
In a democracy of 1.4 billion population where the "Freebie" has become an investment to capture the power,retain the power and then to recapture the power in the election,the leeway for curbing the deficit is only by the austerity measures. Germany could succeed by the austerity measures implemented by Ms.Angela Merkel, Chancellor of Germany. There are few lessons to learn from Mr. of China and Ms.Merkel of Germany. PM,Modiji's austerity measures could succeed only by the cooperation of all political parties of India.
Thank God! Congress did not come to power, otherwise they would have spent all money in all kinds of waivers and free distribution to all so called poor people and made them useless and lazy.
Don't forget Monmohan Government faced the great recession brilliantly.
cut spending and do economic easing what contradiction...
What happened to all that money this govt took from the RBI? Spent everything in buying Karnataka's MLAs??
Even after taking more than three lacs crores from RBI as one time relief to cover up deficit, the go nment is brook. The GDP growth of our neighboring countries like Bangladesh and Malaysia are better than India. Indian growth story was destroyed by the cynical actions like demonetization and half cooked & baked GST. All industries - Small, medium or large in ruins, resulting firing of employees and no addition in the work force. Now the problem is not at the supply end but at the demand end. The govt is clueless to do anything to retrieve the situation, as all policy is made and implemented on the instruction of One Man, all others ministers or advisers are simple dummies to flatter the One.
Do you think Gujarat is a co ption free state? Modi ruled that for 15 years, made huge money and invested in national politics. Now he is milking India for his own survival. His lies only fly with fools or ignorant or his blind fans. What category you belong?
Hari Krishna Johri
subsidies & freebies are for creating the Vote Bank which in turn making people lazy.
Getting out of the growth slump is actually easy but it requires guts which the go nment has we doubt. Government has to start taxing all agricultural income above 10 lacs per year and make every individual list all the properties/lands they hold and then decide on their taxability.
Just even try to make such a suggestion, and the knives will be out for people like you.
Agriculture is the most important job in the entire world . People can survive without any other jobs , but cannot survive without food . So Agriculture should not be taxed no matter how rich the farmer gets because they are feeding the people , corporations are only making slaves of the common man and they are the ones who need to be taxed heavily , it will be better if all do agriculture and be self sufficient instead of working for some useless corporations and the banks who have no future .
In last 6 yrs,modi implemented idiotic advice given to him by socialist babus,US right wingers and RSS.Modi singlehandedly shut down lakhs of industries to achieve his dream of perfect dictatorship.India is not going to come out of this,folks.It is over for us now.The student's riots are against modi and his goon minister shah.
I think economy is going down due to modi's posters everywhere in india.Also non stop advt on TV-whatsup etc have decimated businesses.MOdi is like panauti .Just send him on permanent foreign vacations and we will enjoy our lives
Madan Mohan Siddhanthi
Opposition are putting their best efforts to kill the economy
where is opposition's role in shutting down lakhs of industries.Modi did that willingly.
Keep investing, simplifying laws, improving ease of doing business, reducing co ption in governance, economy will bounce back soon.
Indians will have to suffer with this idiotic party called BJP in power at center. Modi should have been kicked last year for his stupidity.
What Congress would have done better in this Global Slowdown. Atleast there are no widespread scams which flourished in Congress Ruling. Atleast there is sincere efforts by govt. CAA and NRC is for better future of this country. It's simple common sense which religious and biased people are not understanding.
When 3 movie make 100 crore in a day, Gujrat CM gets 180 crore plane for personal sight seeing, our Faniku covered 62 countries, spent 2100 crores in 6 years on world tours..do we have SLOWDOWN at all?? I doubt!!!
3部电影一天赚10亿，古吉拉特首席部长为了私人观光获得价值18亿的飞机，我们的莫迪在6年的时间去过了62个国家，花了2100亿环游世界。我们的经济减速了吗？我怀疑! ! !