New Delhi, Nov 29 () The country's fiscal deficit hit 102.4 per cent of 2019-20 Budget Estimate at Rs 7.2 lakh crore at the end of October, government data showed on Friday. 
 The fiscal deficit or the gap between expenditure and revenue was at Rs 7,20,445 crore as on October 31, 2019, according to the data released by the Controller General of Accounts (CGA).
 The deficit was at 103.9 per cent of 2018-19 Budget Estimate (BE) in the corresponding month a year ago.
 The government has estimated the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3 per cent of the gross domestic product (GDP).
 In September, the government decided to lower tax rate for corporates and has pegged that it will have an impact of Rs 1.45 lakh crore on its revenue mobilisation. 
 Tax sops were intended to boost investment cycle in the face of slowing GDP growth, which had dipped to six-year low of 5 per cent in the first quarter ended June of this fiscal.
 However, GDP slipped further to over six-year low of 4.5 per cent in the second quarter ended September, as per the government data released on Friday.
 Further, the CGA data showed that government's revenue receipts during the April-October period of 2019-20 period rose to 46.2 per cent of the BE as compared to 45.7 per cent in the corresponding period last year.
 In absolute terms, revenue receipts stood at Rs 9.07 lakh crore at the end of October. For the entire 2019-20, the revenue receipts have been pegged at Rs 19.62 lakh crore.
 Capital expenditure stood at 59.5 per cent of the BE during April-October period as compared to 59 per cent in the year-ago period, the CGA data showed.
 Total expenditure during April-October stood at Rs 16.54 lakh crore, or 59.4 per cent of the BE.
 The government has pegged its total expenditure for 2019-20 at Rs 27.86 lakh crore.
 The fiscal deficit figure in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year, as per the CGA.
 Its data gets impacted by temporal mismatch between flow of non-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side, which may get substantially offset by the end of the financial year. KPM RVK

Fiscal deficit hits 102 pc of budget estimate till Oct

India's <keyword id="9857534" type="UNKNOWN" weightage="20" keywordseo="budgetary-fiscal-deficit">budgetary fiscal deficit</keyword> for the April-July 2020-21 period stood at Rs 8.21 lakh crore, or 103.1 per cent of the budget estimates (BE). The 2020-21 deficit -- the difference between revenue and <keyword id="53105" type="PERSON" weightage="20" keywordseo="Expenditure">expenditure</keyword> -- has been pegged at Rs 7.96 lakh crore, as compared to the revised deficit of Rs 7.66 lakh crore for the <keyword id="1553646" type="PERSON" weightage="20" keywordseo="last-fiscal">last fiscal</keyword>. As per the Controller General of Accounts (CGA) data released on Monday, the fiscal deficit during the corresponding months of the previous fiscal was 77.8 per cent of that year's target. The Central government's total expenditure stood at Rs 10.5 lakh crore (34.7 per cent of BE) while total receipts were Rs 2.32 lakh crore (10.4 per cent of BE).

India’s April-July fiscal deficit crosses full-year budget target in four months

New Delhi, Jan 31 () The government's fiscal deficit touched 132.4 per cent of the full-year target at December-end mainly due to slower pace of revenue collections, official data showed on Friday.
 In actual terms, the fiscal deficit or gap between expenditure and revenue was Rs 9,31,725 crore, the data released by the Controller General of Accounts (CGA) showed. 
The government aims to restrict the gap at 3.3 per cent of the GDP or Rs 7,03,760 crore in the year ending March 2020.
The deficit was 112.4 per cent of 2018-19 Budget Estimate (BE) in the corresponding period.
According to the CGA, the government's revenue receipts were Rs 11.46 lakh crore or 58.4 per cent of the 2019-20 BE. In the same period last fiscal, the collections were 62.8 per cent of the BE.
The data further revealed that total expenditure was 75.7 per cent of BE or Rs 21.09 lakh crore. During the corresponding period in 2018-19, the expenditure was 75 per cent of the BE.
Of the total spending, the capital expenditure was 75.6 per cent of the BE, higher than 70.6 per cent of the estimates during the same period in 2018-19.
The Economic Survey on Friday made a case for relaxing the fiscal deficit target of 3.3 per cent of GDP in view of the need to arrest the declining growth, estimated to touch an 11-year low of 5 per cent in the current fiscal.
 The Medium Term Fiscal Policy (MTFP) Statement presented with the Budget 2019-20, pegged the fiscal deficit target for 2019-20 at 3.3 per cent of GDP, which was further expected to follow a gradual path of reduction and attain the targeted level of 3 per cent of GDP in 2020-21, and continue at the same level in 2021-22.
In September 2019, the government decided to lower tax rate for corporates, taking an estimated hit of Rs 1.45 lakh crore on its revenue mobilisation.
Tax sops were intended to boost investment cycle in the face of slowing GDP growth, which dipped to a six-year low of 5 per cent in the first quarter ended June.
It is widely expected that Finance Minister Nirmala Sitharaman will announce slew of measures to revive the slowing economic growth. The GDP growth is estimated to slow to an 11-year low of 5 per cent during the current financial year ending March 2020.
The Economic Survey expects the growth to pick up during the next year. It has projected the GDP growth rate to be in the range of 6-6.5 per cent in 2020-21. NKD MR
MR

Fiscal deficit hits 132 pc of Budget Estimate till Dec

New Delhi, May 29 () The country's fiscal deficit widened to 4.6 per cent of the Gross Domestic Product in 2019-20 mainly on account of poor revenue realisation, according to official data. The deficit, which signifies the gap between government revenue and expenditure, is higher than the revised estimate of 3.8 per cent for the fiscal. According to the Controller General of Accounts (CGA) data, the fiscal deficit for 2019-20 worked out to be 4.59 per cent of the GDP, while the revenue deficit was 3.27 per cent. The effective revenue deficit was 2.36 per cent, the data showed. Finance Minister Nirmala Sitharaman while unveiling the budget in February pegged the fiscal deficit for 2019-20 at 3.8 per cent, up from 3.3 per cent in the original budget estimate. The increase in the fiscal deficit has been mainly on account of shortfall in revenue collection during 2019-20. The revenue receipts during the year worked out to be only 90 per cent of the revised estimate. In absolute terms, total receipts of the government were Rs 17.5 lakh crore against the estimate of Rs 19.31 lakh crore. The data showed the government's total expenditure was Rs 26.86 lakh crore, lower than Rs 26.98 lakh crore projected earlier. The revenue deficit during the fiscal soared to 3.27 per cent of the GDP as against 2.4 per cent in the revised estimates. NKD CS MR MR

Fiscal deficit widens to 4.6 pc of GDP in 2019-20

New Delhi, Dec 31 () The country's fiscal deficit hit 114.8 per cent of 2019-20 Budget Estimate at Rs 8.07 lakh crore at the end of November, official data showed on Tuesday.
 The fiscal deficit or the gap between expenditure and revenue was at Rs 8,07,834 crore as on November 30, 2019, according to the data released by the Controller General of Accounts (CGA).
 The deficit was at 114.8 per cent of 2018-19 Budget Estimate (BE) in the corresponding month a year ago.
 The government has estimated the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3 per cent of the gross domestic product (GDP).
 In September, the government decided to lower the tax rate for corporates and has pegged that it will have an impact of Rs 1.45 lakh crore on its revenue mobilisation.
 Tax sops were intended to boost the investment cycle in the face of slowing GDP growth, which dipped to a six-year low of 5 per cent in the first quarter of this fiscal. The GDP growth slipped further to an over six-year low of 4.5 per cent in the second quarter ended September.
 Due to slowdown, the GST collection has also been subdued putting pressure on overall revenue mobilisation effort of the government.
 Faced with a shortfall in revenue collection, the government has initiated austerity measures by revising downwards the expenditure limit for the January-March period of the ongoing financial year.
 The government has asked all departments to restrict the expenses to 25 per cent of the Budget Estimate (BE) in January-March.
 According to official statement, "the Government of India has received Rs 10,12,223 crore (48.60 per cent of corresponding BE 2019-20 of Total Receipts) up to November 2019 comprising Rs 7,50,614 crore Tax Revenue (Net to Centre), Rs 2,32,600 crore of Non-Tax Revenue and Rs 29,009 crore of Non-Debt Capital Receipts."
 Non Debt Capital Receipts consists of Recovery of Loans (Rs 10,910 crore) and Disinvestment Proceeds (Rs 18,099 crore), it said.
 For the entire 2019-20, the revenue receipts have been pegged at Rs 19.62 lakh crore.
 It further said Rs 4,21,850 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India up to this period which is Rs 10,113 crore lower than the previous year.
 "Total Expenditure incurred by Government of India is Rs 18,20,057 crore (65.3 per cent of corresponding BE 2019-20), out of which Rs 16,06,215 crore is on Revenue Account and Rs 2,13,842 crore is on Capital Account," it said.
 The government has pegged its total expenditure for 2019-20 at Rs 27.86 lakh crore.
 Out of the Total Revenue Expenditure, Rs 3,41,812 crore is on account of interest payments and Rs 2,35,015 crore is on account of major subsidies.
 The fiscal deficit figure in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year, as per the CGA.
 Its data gets impacted by a temporal mismatch between the flow of non-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side, which may get substantially offset by the end of the financial year. DP MR

Fiscal deficit hits 115% of Budget Estimate till Nov

Centre's <keyword id="6365485" type="DEFINITION" weightage="20" keywordseo="Fiscal-Deficit">fiscal deficit</keyword> is expected to touch 7 per cent of the <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> in 2020-21, against budget estimates of 3.5 per cent, <keyword id="1013588" type="COMPANY" weightage="20" keywordseo="Brickwork-Ratings">Brickwork Ratings</keyword> said on Saturday. The ratings agency said that the impact of the lockdown on economic activity shows up starkly in the trends in the Central government revenue collection during the first three months of the 2020-21 fiscal. As per the data released by the Controller General of Accounts (CGA), the Central government's revenue in Q1 of the current year is much lower than the collections for the corresponding period of last year. As per the data, revenue from income tax (personal income tax and corporate income tax) was lower by 30.5 per cent and the GST (CGST+IGST+UTGST) was lower by almost 34 per cent during the period. On the other hand, there is a sharp increase in expenditure (by 13.1 per cent) due to additional spending incurred to save lives and livelihoods and to provide stimulus under the 'Atmanirbhar Bharat' mission. "This has resulted in the fiscal deficit widening to 83.2 per cent of the budgeted target in the first quarter itself," the statement said. According to Brickwork Ratings, the economy is expected to gradually pick up from the third quarter of this fiscal. "Given the early signs of resumption in business activity, we expect revenue collections to reach pre-Covid levels towards the end of the third quarter, hoping that the festive season demand induces consumption and spending," the statement said. "However, if the current situation prolongs further, the government may face acute burden of fund shortage to fulfil the budgeted expenditure even after considering the announced higher borrowing of Rs 12 lakh crore. This could cause a huge cut in capital expenditure, as well as a Centrally sponsored schemes, except MNREGA and the National Health Mission," it added. The Centre has already increased the allocation of Rs 40,000 crore for MNREGA in the 'Atmanirbhar' scheme, and the funds are expected to be utilised fully in the current year. "Given the expected shortfall in revenue, fiscal deficit of the Cent ral government could reach 7 per cent of the GDP in 2020-21, assuming the no minal GDP at last year's level," the statement said. "Borrowings may further increase if the contraction in economy is mo re severe than our early estimates. As States too have been allowed addition al borrowings amounting to 2 per cent of the GDP, the consolidated fiscal de ficit could reach 12 per cent of the GDP," it added. In addition, the ratings agency said that among the major economies, only the US has a higher deficit than India's deficit.

India's fiscal deficit expected to touch 7% of GDP in 2020-21, says report

<ul><li>From tax collections to disinvestment to <keyword id="6365485" type="DEFINITION" weightage="20" keywordseo="Fiscal-Deficit">fiscal deficit</keyword>, the numbers are likely to be sharply lower than the projections in the last budget.</li><li>The coronavirus pandemic had led to two straight quarters of contraction in the economy and that is likely to hit the budget projections.</li><li>These are some of the estimates that you can use to pare your expectations based on ground realities.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/budget">Budget 2021 on Business Insider</a>. </li></ul>In an aspirational goal of becoming a $5-trillion economy by 2025, India’s Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> put forward some projections last February. However, the COVID-19 pandemic is likely to have thrown those estimates out of whack. In a year when the economy contracted for two straight quarters, the scary <keyword id="581165" type="PERSON" weightage="20" keywordseo="revised-estimates">revised estimates</keyword> should not come as a surprise. As Aditi Nayar, principal economist at ICRA put it, in a conversation with Business Insider, the numbers would be much lower than what was targeted last year given the ongoing pandemic. “We need to have very practical expectations,” she added. These are some of ICRA’s expectation from the revised estimates: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Components </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 Budget targets </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICRA estimate </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Edelweiss estimate </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nirmal Bang estimate </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tax revenue </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹24.23 lakh crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% shortfall </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.1% shortfall </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.3% shortfall </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fiscal deficit </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.5% of GDP </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.5% of GDP </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% of GDP </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.4% of GDP </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Disinvestment receipts </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.1 lakh crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.5 lakh crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.4 lakh crore </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.7 lakh crore </td></tr></tbody></table> The lockdown imposed by the central government in an attempt to contain the coronavirus in the country contributed to the sluggish revenue collection by directly impacting businesses' functioning. As per <a href="https://www.businessinsider.in/budget/news/fiscal-deficit-touches-135-1-pc-of-fy21-target-at-november-end/articleshow/80046874.cms">latest data released </a>by the Controller General of Accounts (CGA) at the end of November, the government's gross <keyword id="6435854" type="DEFINITION" weightage="20" keywordseo="Tax-Revenue">tax revenue</keyword> was at ₹10.26 lakh crore, contracting 12.6% during this fiscal year. According to ICRA, the tax revenue is likely to be 20% short of the ₹24.23 lakh crore expected by the Finance Minister in the last budget. ALSO WATCH: <a href="https://www.businessinsider.in/stock-market/news/exclusive-nilesh-shah-of-kotak-mahindra-amc-says-foreign-inflows-profit-growth-are-helping-sensex/articleshow/80339362.cms" data-type="tilCustomLink">One of India’s biggest money managers explains the mother of all bull runs using a bollywood blockbuster Amar Akbar Anthony</a> <div type="Youtube" id="v02oeojB4Jk" title="One Of India's Money Managers Explained ‘The Mother Of All Bull Runs’ Using Amar, Akbar, Anthony" thumbUrl="https://i.ytimg.com/vi/v02oeojB4Jk/mqdefault.jpg"></div> <div type="image" title="GST Collections 2020." msid="80401133" hostid="261"></div> While tax collections fell, the market crash due to the pandemic also put the brakes on disinvestment⁠— the process of government selling its assets like shares like in the case of Life Insurance Corporation of India (LIC), or entire companies, like Air India. Therefore, the government did not make as much money as it wanted to whereas its expenses increased. From the management of the pandemic, creating health infrastructure in a hurry, to supporting the poor with free food, and helping the struggling industries with the stimulus package. When the government spends more than it earns, the difference is called fiscal deficit. It is likely that the deficit may be nearly twice as much as the Finance Minister promised during her last budget speech. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="8" retweetcount="3" status="Economist vs Investor-- two different POVs on #BudgetInsider, @iyer_sriram in conversation with @ICRALimited's Adit… https://t.co/Ij3Ju6LJBL" createdat="1611227111000" id="1352210630531452929"></div> This pain may spill into the next year as well. Therefore, Nayar said that as long as Sitharaman’s estimate for the budget deficit is less than 5% for the financial year ending March 2022, it is acceptable. <div type="image" title="Fiscal deficit" msid="80401149" hostid="261"></div> The budget estimates for the upcoming fiscal year may be soothing as the economy seems to be turning a corner. “For the third quarter as a whole, we've got most indicators having shown a year-on-year expansion, and that again is something that's really important as an import for economists like me who need to figure out whether we are already, out of the recession or we are going to get out of the recession in the current quarter,” said Nayar. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="5" retweetcount="1" status="#BudgetInsider | &quot;Economic metrics indicate that India will be out of the recession by March 2021.&quot;: @ICRALimited's… https://t.co/yutrKaxSt1" createdat="1611238345000" id="1352257747866189829"></div> However, the revised estimates are going to look bad. The only question will be if they are better or worse than the expectations. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/recession-in-india-will-end-latest-by-march-says-a-top-economist/articleshow/80399198.cms" data-type="tilCustomLink">Recession in India will end latest by March, says a top economist</a> <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-to-soon-introduce-voice-and-video-calls-for-web-multi-device-support-jiomart-integration-and-more/articleshow/80398791.cms" data-type="tilCustomLink">WhatsApp to soon introduce voice and video calls for Web, multi-device support, JioMart integration and more</a> <a href="https://www.businessinsider.in/stock-market/news/bitcoin-falls-10-after-report-suggests-a-critical-flaw-in-the-cryptocurrency-called-double-spend-may-have-occurred/articleshow/80390513.cms" data-type="tilCustomLink">Bitcoin falls 11% after report suggests a critical flaw in the cryptocurrency called 'double spend' may have occurred</a>

Do not panic when Finance Minister Nirmala Sitharaman reads out the revised estimates

Mumbai, Jun 15 () The government will have to chart out a fresh glide path to bring down the fiscal deficit once the normalcy is restored, an article published in the monthly bulletin of the Reserve Bank has suggested. The union government's fiscal situation is expected to worsen in view of the low tax realisation, higher expenditure on healthcare and overall disruption in economic activities following the coronavirus outbreak. The country's fiscal deficit soared to a seven-year high of 4.6 per cent of the Gross Domestic Product (GDP) in 2019-20, as per the latest data provided by the Controller General of Accounts (CGA). The government, while unveiling the budget proposals for 2020-21 in February, had proposed to bring down the fiscal deficit to 3.5 per cent of the GDP. The budget was presented about two months before the country affected lockdown on March 25 to deal with the COVID-19 pandemic. "The deterioration in provisional accounts for 2019-20 can be attributed to tax revenue shortfall, both cyclical and structural," said the RBI article. Given that the budget estimates of 2020-21 were projected on the basis of 2019-20 RE, a shortfall in tax revenue collections in 2019-20 (Provisional Accounts) vis-à-vis 2019-20 (Revised Estimates) may distort the fiscal arithmetic for 2020-21. "This could be further impacted adversely by COVID-19 related macroeconomic effects in 2020-21, especially Q1. Against this backdrop, fiscal effort in 2020-21 has to be calibrated and judicious, while simultaneously charting out a glide path back to fiscal rectitude once the rough waters calm," said the RBI article. The Fiscal Responsibility and Budget Management (FRBM) Rules, 2004, specifies annual targets and mandates the central government to reduce the fiscal deficit by an amount equivalent to 0.1 per cent or more of GDP per year. The bulletin said the article has been prepared by Sangita Misra, Samir Ranjan Behera, Kaushiki Singh and Saksham Sood of the Department of Economic and Policy Research, RBI. The bulletin, however, said that "views expressed are of the authors and do not pertain to the institution they belong to". While raising the fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent pegged earlier for 2019-20, the government had utilised 'escape clause' under the FRBM Act which provides it leeway for relaxation of fiscal deficit roadmap during time of stress. India had imposed a lockdown on March 25 with an aim to restrict the spread of coronvirus. Economic activities in the country have been severely impacted due to the lockdown. With Unlocking starting this month, there have been pickup in economic activities. During 2018-19, the fiscal deficit was 3.4 per cent the GDP. The government had said it would have restricted it to 3.3 per cent but for the income support to farmers. The government had provided Rs 20,000 crore towards the income support for 2018-19 while presenting the Interim Budget for 2019-20 (February 1, 2019). NKD CS MKJ

Govt needs to chart out fresh glide path to bring down fiscal deficit: RBI bulletin

New Delhi, Feb 28 () Following are the top business stories at 1837 hours: DEL68 BIZ-GROWTHIndia's GDP growth slips to 4.7 pc in December quarterNew Delhi: India's economic growth slowed to 4.7 per cent in October-December 2019, according to official data released on Friday. DEL70 BIZ-FISCAL DEFICITFiscal deficit touches 128.5 pc of budget estimate at Jan-end: Govt dataNew Delhi: India's fiscal deficit touched 128.5 per cent of the whole year budget target at January-end, said the Controller General of Accounts (CGA) on Friday. DEL60 BIZ-LD STOCKSCorona carnage: Sensex crashes 1,448 pts; Rs 5.45 lakh cr investor wealth wiped offMumbai: The Sensex logged its second-biggest one-day fall in history on Friday as concerns over the rapidly-spreading coronavirus triggered a manic global sell-off. DEL57 BIZ-INFRA-GROWTHCore sector grows by 2.2 pc in Jan as power generation picks upNew Delhi: Eight core industries recorded a 2.2 per cent growth in January helped by expansion in the production of coal, refinery products and electricity, official data released on Friday showed.DCM21 BIZ- LD INVESTOR WEALTHInvestors become poorer by Rs 5 lakh cr as equity markets fallNew Delhi: Investor wealth tumbled by more than Rs 5 lakh crore on Friday as equity markets crashed tracking global equity selloff amid rising uncertainty over the economic impact of coronavirus outbreak.DCM14 BIZ-TELECOM-AGRAGR woes: No decision on relief to telcos at DCC meetNew Delhi: The crucial meeting of Digital Communications Commission (DCC) on Friday could not arrive at a decision on relief to the distressed telecom sector and more details are required for reconciliation of AGR data, sources said.DEL66 BIZ-RUPEE-CLOSERupee dives 60 paise to 72.21 against US dollarMumbai: The Indian rupee plunged by 60 paise to settle at 72.21 (provisional) against the US dollar on Friday, tracking heavy sell-offs in domestic equities and sustained foreign fund outflows. DCM12 BIZ-IOCReady for BS-VI supply, prices to go up marginally from Apr 1: IOCMumbai: National oil marketer Indian Oil Corporation (IOC) on Friday said it is ready to supply low emission BS-VI fuels from April 1 and that there will be a marginal increase in retail prices.DCM7 BIZ-STOCKS-STATSMarket selloff: 1,767 stocks turn red, 274 defy trend on BSENew Delhi: More than 1,700 BSE-listed stocks, mostly from the mid-cap and small-cap space, witnessed heavy selloff on Friday, as equity markets crashed amid rising fears of the coronavirus outbreak turning into a pandemic. BOM12 BIZ-FOREX-RESERVESForex reserves up by USD 29 mn to record USD 476.12 bnMumbai: India's foreign exchange reserves inched up by USD 29 million to a fresh lifetime high of USD 476.122 billion in the week to February 21, aided by an increase in the value of gold holdings, Reserve Bank data showed on Friday. DCM19 BIZ-PMFBYGovt not to change farmers' share of premium under PMFBYNew Delhi: The government is not going to change farmers' share of premium on crops insured under the Pradhan Mantri Fasal Bhima Yojana (PMFBY), a senior agriculture ministry official said on Friday. SHWSHW

Business highlights

<ul><li>Excerpts from interview conducted by <a href="https://www.businessinsider.com/author/joe-ciolli?IR=T" data-type="tilCustomLink">Joe Ciolli</a>, <a href="http://businessinsider.com/" data-type="tilCustomLink" target="_blank">Business Insider</a>.</li><li>The Indian government is hoping to stimulate the economy towards faster growth with the upcoming <keyword id="8192304" type="UNKNOWN" weightage="20" keywordseo="union-budget-2020">Union Budget 2020</keyword>.</li><li><keyword id="1422411" type="PERSON" weightage="20" keywordseo="Rajesh-Gopinathan">Rajesh Gopinathan</keyword>, CEO and MD of <keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS) told Business Insider that he hopes that the government’s new measures won’t make foreign exchange prices more volatile.</li><li>A weakening rupee might help IT companies hedge in the short run, but a stable foreign exchange is a prerequisite for long run contracts.</li><li>He believes education, government, and healthcare are that the next three verticles ripe for digital growth.</li><li>TCS is also hoping that the insurance sector will get liberalised and follow in the footsteps of banking and financial services.</li></ul>Indian IT majors have a set of problems that are diametrically different from that of other domestic firms. Their growth story began in foreign countries, like the US, and though their domestic clients grew, international business is a major chunk of their revenue. Which means foreign exchange plays a big role in their fortunes. So, any move to ensure that India’s slowing economy is triggered will also strengthen the rupee, which is bad news for those who earn in dollars and euros. Crisis and stimulus “We’re quite comfortable with the policymaking in India for the last many years. Our only hope is that the current credit crisis and the stimulus don’t spike the foreign exchange prices,” Rajesh Gopinathan, CEO and managing director of Tata Consultancy Services (<a href="https://www.businessinsider.in/careers/news/tcs-plans-to-add-30000-freshers-to-its-ranks-to-reshape-its-cost-structure/articleshow/71524019.cms">TCS</a>) told Business Insider. At the same time, Gopinath hopes that the government would give impetus to three sectors — government, <a href="https://www.businessinsider.in/why-indias-health-budget-needs-more-infusion/articleshow/70082859.cms">healthcare</a> and <a href="https://www.businessinsider.in/niti-aayog-wants-education-budget-to-increase-further/articleshow/69941463.cms">education</a> — where technology implementation is at its lowest. Their growth and subsequent digitization will help IT companies build a robust domestic business. “They have not yet been properly revolutionized by technology, where the opportunity is huge and relatively untapped. They are still far behind,” he said. TCS also hopes that the <a href="https://www.businessinsider.in/business/news/life-insurers-bat-for-100-pc-foreign-investment-in-sector-via-automatic-route/articleshow/72874288.cms">insurance sector will get liberalised</a> and follow the example set by banking and financial services, which was one of the first sectors to be liberalised in the Indian economy. According to Gopinathan, “Insurance is still not liberalised. As the government is liberalising more, there is greater private sector investment and greater acceptance of technology and leverage.” After all, <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-hcl-tech-and-wipro-shares-react-to-bfsi-slowdown/articleshow/73420055.cms">BFSI</a> is the biggest segment of TCS. Economic stimuli could make foreign exchange more volatile This budget, Finance Minister Nirmala Sitharaman is expected to announce a <a href="https://www.businessinsider.in/budget">slew of measures </a>to help stimulate the economy. India’s growth has dropped from 7% last year to <a href="https://www.businessinsider.in/policy/economy/news/international-monetary-fund-cuts-india-gdp-growth-estimate/articleshow/73441006.cms">4.8% expected this year</a>. Its fiscal deficit hit 114.8% of 2019-20 budget estimate according to Controller General of Accounts (<a href="https://www.businessinsider.in/business/news/fiscal-deficit-hits-115-of-budget-estimate-till-nov/articleshow/73049042.cms">CGA</a>) in November. Frequent stimuli and their effect on economic growth does not bode well for IT companies who rely heavily on outsourcing. It means currency markets turn volatile as do equity markets, which is extra bad news since international tensions are already playing a big part in currency fluctuation. “We want stability. For us, forex stability is the most important part of it,” said Gopinathan. In spite of the popular myth, a falling rupee is also not always good news for IT companies. Most IT majors hedge their foreign exchange earnings and they get into trouble when currency value dips or rises beyond the predictable band. In the long run, volatility and uncertainty are an obstacle. Of late, it is becoming tough for <a href="https://www.businessinsider.in/policy/economy/news/india-is-slowing-down-so-fast-that-even-experts-cant-keep-up/articleshow/72295703.cms">experts to predict </a>the Indian economy. <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword> will bear the largest impact of foreign currency fluctuations, especially when it comes to the dollar since nearly 70% of software exports land in the US. Education is ripe for disruption In addition to stability, TCS is also looking forward to exponential growth in the <a href="https://www.businessinsider.in/budget/news/education-budget-2020-the-rise-in-budget-allocation-for-education-is-just-not-enough/articleshow/73182288.cms">education sector</a> is the “most ripe for disruption”. “That ability to personalise education and to really switch on to life long learning as a concept we think is possible. And, it’s possible at scale,” he said. Over the past couple of years, TCS has observed that self-guided learning is increasing significantly. The company has been rethinking the role of schools and universities in terms of where knowledge comes from and what testing can achieve. If testing and knowledge acquisition shifts online and becomes tech-enabled, schools and college will be geared towards soft skills — like communication and values among others. “Directionally, the government is very focused on raising investments in education and research, which we believe is structurally required,” said Gopinathan. Healthcare is inefficient, says Gopinath While education is ready for change, <a href="https://www.businessinsider.in/budget/news/health-budget-2020-after-963-children-died-in-one-hospital-in-the-last-year-indians-will-be-watching-the-centres-allocation-to-upgrade-public-healthcare/articleshow/73169619.cms">healthcare</a> is one of the most inefficient industries — especially when it comes to data privacy. According to Gopinathan, solutions are available but legislation is yet to catch up. “Regulation needs to be designed for what it is seeking to achieve rather than justifying the regulatory bureaucracy,” he said. If there is a large-scale shift in mentality, the largest IT company in the country, will be able to gain a lot. After all, it is part of gigantic tech projects undertaken by the government and other industries. TCS has already been working with the government to digitise the passport system and citizen registry. It’s also worked on a project with the stock exchange, the State Bank of India and payments systems. “It’s an exciting market with its own challenges — not an easy market to operate in,” said Gopinathan. See also: <a href="https://www.businessinsider.in/tech/news/budget-2020-indias-mobile-phones-makers-fear-for-jobs-in-the-face-of-fewer-incentives-and-global-competition/articleshow/73261138.cms">Budget 2020: India’s mobile phones makers fear for jobs in the face of fewer incentives and global competition</a> <a href="https://www.businessinsider.in/budget/news/union-budget-2020-allocation-to-space-exploration-should-be-considered-a-seed-fund/articleshow/73665432.cms">Union Budget 2020: 'Allocation to space exploration should be considered a seed fund'</a> <a href="https://www.businessinsider.in/defense/news/indias-budget-allocation-for-defence-has-remained-fairly-static-for-the-past-five-years/articleshow/73153930.cms">Budget 2020: Five charts that explain what you can expect from India’s defence expenditure this year</a>

Exclusive: TCS CEO shares his hopes and fears from the budget 2020

<ul class="summary-list"><li>England plans to allow bars, clubs, and pubs to operate at full capacity starting June 21.</li><li>Venues say visitors are raring to return - but health experts warn this could cause another COVID-19 surge.</li><li>Some venues will open without COVID-19 safety measures, including social distancing, owners told Insider.</li></ul>Sticky club floors, overpriced drinks, and raging hangovers could return for ravers if England's <keyword id="14733" type="COMPANY" weightage="60" keywordseo="nightlife">nightlife</keyword> opens at full capacity as planned later this month.The government is planning to lift all legal limits on social contact on June 21 - but scientists warn that the return of nightlife "as normal" could lead to surging COVID-19 cases. Some nightlife operators told Insider they intended to reopen without COVID-19 safety measures.This would be the first time clubs have been able to operate since March 2020.<div type="image" title="Empty Pryzm nightclub Nottingham" height="3686" width="5529" msid="83201937" hostid="261"></div><h2>Young people in the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> largely haven't been vaccinated yet</h2>Brits are able to visit late-night pubs, clubs, and bars from the age of 18. But most people in the country under 30 haven't been vaccinated yet because the UK has largely prioritized vaccination based on age. Those in their 20s are expected to start getting invitations for their vaccines any day now."In fact, this is the age group where there might be the most risk in terms of ongoing viral infection and transmission, because they're just not been vaccinated," Dr. Julian Tang, a consultant virologist at Leicester Royal Infirmary and honorary associate professor at Leicester University, told Insider.Tang noted that the number of daily new COVID-19 cases in the UK had leveled off - according to <a href="https://coronavirus.data.gov.uk/details/cases">figures from the UK Government</a>, the daily number of new confirmed cases has hovered around the 2,000 mark for the past four weeks - indicating "the virus is not going away."But last Wednesday, May 26, the UK reported more than 3,000 daily <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> cases for first time since early April."If anything, I think it's pushing back and what's happening is that the vaccine barrier that we've erected, and are still building on, is controlling the virus in those who were vaccinated," he said. "The unvaccinated may actually still be a reservoir for the virus."<div type="image" title="Manchester busy clubs bars 2018" height="2007" width="4015" msid="83201941" hostid="261"></div>When people go clubbing, they're going into "a pool of essentially nonimmune people" without social distancing, he said."You'll get a surge anyway with indoor dining opening up and increased household mixing anyway, but I think you may see a surge, perhaps isolated surges, among these nightclubbing populations," Tang added.<a href="https://www.businessinsider.com/why-bars-are-so-dangerous-for-spreading-the-coronavirus-2020-7">Insider's Hilary Brueck</a> previously reported that bars were particularly dangerous for spreading COVID-19 because people might be less likely to pay attention to social-distancing protocols when they've had something to drink. Most bar workers didn't have sick pay, making it harder to stay home if they got symptoms, and even people who don't have any symptoms and feel well can still carry, and spread, the virus, Brueck reported.<h2>Some venues are opening without safety measures in place</h2>The hospitality industry is adamant it can reopen - and can do so safely."There is no real evidence that pubs and restaurants, with strict hygiene regimes and social-distancing measures, were spreading the virus," Sharif Uddin, the owner of shisha bar and restaurant Dusk in Brentwood, Essex, said."Customers are probably safer here than in supermarkets or eating with friends and family at home," he added.Research suggests this is false.A 2020 study in Scotland published in the <a href="https://www.jsad.com/doi/10.15288/jsad.2021.82.42" target="_blank" rel="noopener noreferrer">Journal of Studies on Alcohol and Drugs</a> showed that despite the efforts of bar operators and guidance from the UK government, potentially significant risks of COVID-19 transmission persisted in a substantial minority of observed bars, especially when customers were drunk."Observed incidents of concern included close physical interaction between customers and with staff, frequently featuring alcohol intoxication and rarely effectively stopped by staff," the research concluded.Peter Marks, the CEO of Rekom, Britain's largest specialist late-night bar operator, told Insider the company's venues were set to open on June 21 "without COVID measures."Marks said that there had been talk of limits on capacity in the early days of nightlife reopening but that this "isn't something that we want to encourage."Marks said proof of vaccination, as well as rapid tests, could be suitable for special events such as vacations or festivals, but was not worth the time or planning for "spontaneous" events like going to the pub, a nightclub, or a comedy club."There's no difference between a pub and a nightclub at midnight, and so it's daft to pretend that there is," he said.Sacha Lord, nighttime-economy advisor at Greater Manchester Combined Authority in the northwest of England, said that social-distancing measures made venues more expensive to operate because of the extra costs of limited capacity, table service, and more security.<div type="image" title="Manchester Parklife festival big crowd 2018" height="2657" width="3992" msid="83201947" hostid="261"></div>Lord is also a cofounder of the Warehouse Project and Manchester's Parklife festival. He said Parklife would open at its normal 80,000 capacity in September with no social distancing in place, though he said staff members would hand out sanitizer and many festivals would go cashless."You can't run a festival or you can't run a nightclub or a live-music gig with social distancing," Lord said. "It's just impossible. So we are gearing up to operate as normal."Tristan Moffat, an operations director at the Piano Works, a nonstop live-music venue with two locations in London, said both sites would be opening as usual - but would use Twitter for music requests rather than written slips and would have a separate space for customers who want to be distanced from others."My biggest concern is the potential for conflict at our front door and the staff having to take abuse and harassment," he said, adding that it could be "human whack-a-mole."<h2>The <keyword id="43587" type="ORGANIZATION" weightage="60" keywordseo="pandemic">pandemic</keyword> has devastated the hospitality industry, especially late-night venues</h2>"We have had an extremely testing year, and it will be a huge relief to get back to normality," Nikolas Opacic, the owner of <a href="https://www.seven54.co.uk/">Seven 54</a>, a restaurant and bar in Manchester, told Insider.<div type="image" title="The Leicester Arms pub in London had to temporarily close during the UK's winter lockdown." height="2782" width="4205" msid="83201949" hostid="261"></div>"As a neighbourhood operator we've particularly missed our regular customers who often dine with us on a daily basis," Opacic said. "They have become a big part of our day to day lives, and we can't wait to make up for lost time."The UK has had various waves of local and national restrictions, though these can largely be boiled down to two main national lockdowns, one last spring and one in the winter, during which indoor and outdoor hospitality - including restaurants, cinemas, and nightlife - were off limits.<div type="image" title="Moon Under Water pub in London closed during lockdown" height="3001" width="4500" msid="83201955" hostid="261"></div>In the time between the two lockdowns, venues could reopen, though there were certain limits in place, including a curfew. Clubs weren't able to operate as usual but could stay open if they turned themselves into bars or restaurants. Bars, pubs, and restaurants on April 12 were allowed to reopen for outdoor service, with indoor seating returning May 17.Hospitality sales from April 2020 to March of this year dropped by £80.8 billion ($114 billion) - or nearly two-thirds - year-over-year, <a href="https://cgastrategy.com/hospitality-sector-loses-80-8bn-of-sales-in-12-months-of-covid-19/">according to the research firm CGA</a>.Marks said that, alongside events and travel, the hospitality sector was the worst affected sector during the pandemic and that within that late-night venues had been hardest hit."We've been shut for 15 months," he said. "That causes no end of grief with people that work with us, our partners, our suppliers."<div type="image" title="Empty Przym nightclub Leeds" height="3674" width="4899" msid="83201957" hostid="261"></div>The Piano Works, the live-music venue with two locations in London, told Insider it had been able to open for only two days over the past 14 months.Opacic said that, as a family business, Seven 54 had struggled financially during the lockdowns but that government support such as the Eat Out to Help Out program - in which the government funded half-price restaurant meals in August - and furlough enabled the company to stay afloat.<div type="image" title="Eat Out to Help Out restaurant" height="507" width="676" msid="83201960" hostid="261"></div>"I feel like the government has tried their best to keep the industry in survival mode," he said.But Marks said the level of government support businesses received during <keyword id="91743" type="PERSON" weightage="60" keywordseo="lockdown">lockdown</keyword> depended on their size."The smaller operators have actually been proportionately helped more than the larger operators," he said, adding that Rekom "went bust" in 2020."If they'd been supportive," he said, "we wouldn't have gone bust."<div type="image" title="Empty Covent Garden pubs and restaurants in January 2021" height="3415" width="5123" msid="83201962" hostid="261"></div>The lockdowns had major staffing implications for the companies that Insider spoke with, too.Staff have been able to recover wages through the UK government's furlough program, but many in the industry believe this wasn't enough, and <a href="https://cgastrategy.com/hospitality-sector-loses-80-8bn-of-sales-in-12-months-of-covid-19/">UKHospitality said</a> about 660,000 hospitality workers lost their jobs during the pandemic.Lord said freelancers who make their money organizing festivals were at a "breaking point," while staffs at bars, pubs, and restaurants had lost tip income.<div type="image" title="A staff member puts signs outside a pub in central London in May 2021" height="3712" width="5568" msid="83201963" hostid="261"></div><h2>Venues are expecting bars and clubs to be full</h2>Marks said there would be "huge pent-up demand" when clubs and late-night bars reopened at full capacity, adding that Rekom was preselling events online and there was "loads and loads of interest."He added that there would be a surge in nightlife in September when students started at university.Marks sits on the board of the trade body UKHospitality. He said its surveys found that pubs that reopened outdoors in April "have outperformed nearly everybody's expectations" despite the cold weather.<div type="image" title="Crowds of people flock the outdoor restaurants and pub tables in Soho on April 12, 2021 in London, England" height="1750" width="3500" msid="83201968" hostid="261"></div>Spending in pubs and restaurants soared by 215% week-on-week after outdoor dining reopened, according to data from Cardlytics and Curve.Lord said he expected city centers to take longer to recover because fewer people working in offices would mean fewer people gathering for drinks after work, because some people remained hesitant to take public transport, and because fewer tourists might visit. He said that instead, suburbs would "thrive."Lord said Parklife usually took about three months to sell out but did so this year in 78 minutes.Moffatt said the Piano Works was nearly fully booked from May 17, when venues were allowed to open indoors at limited capacity. He said its two music venues were looking at different ways to lure customers back in, including doubling prepaid bar tabs.Uddin, in contrast, said demand for nightlife was "mixed.""Many regulars are desperate to come back and socialize again," he said. "Others appear to be nervous until after they can have their second vaccination."

UK nightclubs are set to open for the first time in over a year, some without any COVID-19 safety measures. Venues can't wait - but some fear a virus surge among young people.

You Searched For "CGA data" and got 11 results