India’s budget under strain on day one of new fiscal year


NEW DELHI: India kicks off its fiscal year with revenues under severe strain. A prolonged slowdown in the economy depressed tax collections in the financial year that ended Tuesday, latest offi al data show. As India now conducts the world’s biggest lockdown, Budget pressures are set to worsen.


Finance minister Nirm Sitharn has already outlined a vir s relief package of Rs 1.7 lakh crore ($22.5 billion) and may be planning more support. That could push up the go nment’s fiscal deficit target to as high as 6.2% of gross domestic product (GDP) in the current year, according to Fitch Solutions, compared with the go nment’s target of 3.5%. Others, like DBS Group and Nirmal Bang Institutional Equities Pvt, see a deficit of 4.5%.

印度财政部长西塔拉曼已经制定了1.7万亿卢比(225亿美元)的疫情救助计划,并计划提供更大力度的财政支持。惠誉公司的数据显示,此举或将政府的财政赤字目标推高至本年GDP的6.2%,而印度政府设定的目标是3.5%。星展集团和Nirmal Bang Institutional Equities Pvt等其他银行预计印度的财政赤字将达到其GDP的4.5%。

“All the Budget maths will go haywire,” said Kunal Kundu, economist with Societe Generale GSC Pvt in Bengaluru. “There will surely have to be some restructuring in expenditure profile and the fiscal deficit would indeed have to rise, not just because of higher expenditure but also because of weaker growth.”



Even before the vir s, Asia’s third-largest economy was on track for its weakest expansion in more than a decade of 5% in the fiscal year that just ended.


With Prime Minister Narendra Modi imposing a three-week lockdown on India’s 1.3 billion people from March 25 to contain the spread of the vir s, non-essential consumption and production in the economy is now at a standstill.


Revenue sources


The go nment had expected to fund its Rs 30 lakh crore spending plan in the new fiscal year from the following sources: Rs 20 lakh crore from taxes, fees and dividends; Rs 2.1 lakh crore from asset sales; and the remaining Rs 7.8 lakh crore from market borrowings.


But offi al data released on Tuesday show it’s falling far behind on its tax targets. Net tax revenue in the 11 months of the last fiscal year was 74.1% of the budgeted estimate, according to figures from the Controller General of Accounts. To meet its full-year target, the go nment would need to have collected Rs 3.9 lakh crore in taxes in March.


Revenue from asset sales also look unlikely.


The go nment had hoped to raise a record amount by selling national icons such as flag carrier Air India Ltd, refiner Bharat Petroleum Corp and listing Life Insurance Corp of India on the stock exchange. It’s now facing record losses in aviation, plunging oil prices, and the worst quarterly drop in local stocks since 1992, making an IPO difficult.



译文来源:三泰虎 http://www.santaihu.com/49636.html   译者:Jessica.Wu


Modi do not believe in doing home work and at the same time he refuses to listen to others while declaring major and very vital decisions affecting whole nation . This arrogant attitude and timidness of ministers in checking his wrong steps is playing havoc to Indian economy. COVID-19 situation has been disproportionately overblown . He made India and economy halt completely for long period.


Jagdish Madan

Would you prefer the corrupt to the core Italian and her retarded brat remely controlling the Indian economy - yet again?


Anirban Chatterjee

you live in a fool's paradise if you think COVID 19 is overblown




We Indian's, have to make the best of the bad situation. No use blaming Go nment for COVID-19 situation - which country in the world is uneffected ? 'Financially, India is a better placed than most countries.


Jagdish Madan

That's the most positive way to look at the situation!




Slow down in economy is going to be common with all the nation of world not alone India because less production and restrictions on movement of goods until vir s is gone.



Ananta Charan Rout

Gt. is doing an Exlnt Job. Let us help our Gt.



Chandrasekaran Krishnamurthy

Go nment of India has to control the expenditure during the present fiscal year


Naga Raja

not there also by it all going to be paid by the evry one here



Jagdish Madan

Understandable under the circumstances! Things are bound to improve with time!




Jagdip Vaishnav

With central gt hard work, Public, Corporate support we shall soon overcome this situation


Viji Cheri User

Can we come out of this phase ? Only time will tell




103% growth in oral bonds (Read ADR report), Going greece way. Chances of recovering at 2%.



Agnel Dsilva

This the fault of Nehru & Pakistan & not by our Fekhu Ghody !



Vik Singh

Modi has blundered yet again . There was no need for such a massive lockdown that has disrupted the economy. I don't know who are his advisors but clearly he doesn't know what he is doing.



Ramesh Sargam

Entire Indians health under strain for the past couple of weeks after corona vir s set in India. Is this time to talk about India's budget and India's economy? First let the vir s go, let people come out and engage in their respective work. Then the economy will slowly gain momentum. When such rich nations like USA are struggling with the vir s and with their economy, India is no exception.




Gopkrishnan T.s

Our de acy institutions like Assemblies and parliament should avoid meetings



Nutz Nutz

I am sure there is more than enough room for recovering this considering the crude is at a 20 year low of 20 dollars and the retail price is as if crude is at 75 dollar a barrel. go nment is saving billions in just crude imports every month.



petrol and diesel consumption now a days has gone down to only 10% of average ,where is gain on this count.


MOhammed Ansar

It's down by 90%




There are several po iticians who have enough black money overseas to ease the fiscal strain. Gt needs to get that money back fast!! Extraordinary situation demands ruthless action ag inst these criminals




Nayyar Arvind

Meeting the targets forFY2019-20and2020-21is almost impossible now

现在看来,印度几乎不可能实现2019- 2020财年和2020-2021财年的目标啦


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