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<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, The Centre is planning to raise Rs 7.5 lakh crore through market borrowing in the April-September period of 2024-25 to fund the <keyword id="806376" type="General" weightage="20" keywordseo="revenue-gap" source="Orion">revenue gap</keyword> to push economic growth, the <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">finance</keyword> ministry said on Wednesday. Out of gross market borrowing of Rs 14.13 lakh crore estimated for 2024-25, Rs 7.5 lakh crore, or 53 per cent, is planned to be borrowed in the first half (H1), an official statement said. Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> in interim Budget proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year. This is lower than last year's gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever. "The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. "Both will be less than that in 2023-24. Now that private investments are happening at scale, the lower borrowings by the central government will facilitate larger availability of credit for the private sector," she had said. There are signs of private investment picking up in the steel and cement sector due to massive capital expenditure by the government. Against the estimate of Rs 10 lakh crore for 2023-24, the government has earmarked Rs 11.11 lakh crore during the next year.

Govt plans to borrow ₹7.5 lakh crore from market in first half of FY25

<ul class="summary-list"><li>Roku shares dropped as much as 27% on Friday after the streaming service missed Q2 results and warned of a Q3 revenue shortfall. </li><li>Advertisers and consumers pulled back on spending in Q2 and the company sees that continuing through its September quarter. </li></ul><a href="https://markets.businessinsider.com/stocks/roku-stock?miRedirects=1">Roku</a> shares lost nearly a third of their value on Friday after the entertainment streaming service warned of weaker-than-expected revenue as consumers and advertisers alike pull back on spending. "We are in an economic environment defined by recessionary fears, inflationary pressures, rising interest rates, and ongoing supply chain disruptions," Roku's CEO Anthony Wood and CFO Steve Louden said in a <a href="https://image.roku.com/c3VwcG9ydC1B/2Q22-Roku-Shareholder-Letter.pdf">second-quarter letter to shareholders</a> published late Thursday. Roku stock fell as much as 27%, the lowest price since March 2020. The shares had already lost about 62% this year through Thursday's regular session. Investors knocked the shares lower after Roku late Thursday projected third-quarter total net revenue of $700 million, a 3% increase year over year but well below FactSet's consensus estimate of $898 million. It also pulled its full-year revenue growth estimate. Roku said it experienced a "significant slowdown" in TV advertising spending in the second quarter that pressured its platform revenue growth. Platform revenue increased 26% to $673 million from a year ago, but Roku said that growth was lower than expected. "We believe this pullback mirrors the start of the pandemic in 2020, when marketers prepared for macro uncertainties by quickly reducing ad spend across all platforms," the company said. Roku expects spending by advertisers to continue to be dented in the second half of 2022. It also foresees continued moderation in consumer-discretionary spending, moves that will likely hurt sales of Roku TV and Roku players. The company swung to a second-quarter loss of $0.82 a share from earnings of $0.52 a share a year earlier. Revenue for the quarter ended June 30 did rise to $764.4 million from $645.1 million a year ago. But analysts had expected revenue of $804 million and a loss of $0.71 per share.

Roku plunges 27% as the streaming service flags 'recessionary fears' alongside shortfall in quarterly results and weak outlook

Maharashtra's Deputy Chief Minister <keyword id="6355042" type="General" weightage="80" keywordseo="devendra-fadnavis" source="Orion">Devendra Fadnavis</keyword>, who also holds the finance portfolio, presented a Rs 547,450 crore budget for 2023-2024 showing huge fiscal and revenue deficits, here on Thursday. As per the budget estimates, the state plans to spend Rs 547,450 crore with an estimated revenue receipt of Rs 449,522 crore over a revenue expenditure of Rs 465,645 crore, resulting in a revenue shortfall of Rs 16,211 crore - down from Rs 24,353 crore over 2022-2023. The state remains at the lead in fiscal reforms, consistently maintaining the revenue deficit below 1 per cent of the state gross domestic product (SGDP). The state government has also succeeded in keeping the fiscal deficit below 3 per cent of the SGDP, and the fiscal deficit for 2023-2024 is estimated at a whopping Rs 95,500.8 crore - up from Rs 89,598 crore over 2022-2023. <keyword id="62011" type="General" weightage="80" keywordseo="fadnavis" source="Orion">Fadnavis</keyword> said that the budget is based on five major goals  'Panchamrut'  covering the farmers, inclusive development, infrastructure, employment and environment. Accordingly, he has allocated Rs 29,163 crore for sustainable farming and prosperous farmers; Rs 43,036 crore for inclusive development of all sections of society, including women, children, tribals, BC/OBCs; Rs 53,058.55 crore for infrastructure development with substantial capital investment; Rs 11,658 crore for competent, skilled jobs creation for the youth; and Rs 13,437 crore for environment-friendly development. The budget's outlay for scheme expenditures has been fixed at Rs 172,000 crore, including Rs 13,820 crore for Scheduled Caste Plan and Rs 12,655 crore for Tribal Sub-plan, besides announcing several new corporations for different communities to boost their economic development, said Fadnavis. The state's debt burden, as per the latest RBI report, stood at Rs 6.8 lakh crore till March 31, 2023, standing behind <keyword id="20154" type="General" weightage="80" keywordseo="tamil-nadu" source="Orion">Tamil Nadu</keyword> (Rs 7.53 lakh crore) and <keyword id="6357713" type="General" weightage="50" keywordseo="uttar-pradesh" source="Orion">Uttar Pradesh</keyword> (Rs 7.1 lakh crore). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/jio-platforms-buys-us-based-communications-equipment-maker-mimosa-networks-for-60-million/articleshow/98520699.cms">Jio Platforms buys US-based communications equipment maker Mimosa Networks for $60 million</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-group-sbi-sbi-life-among-stocks-to-watch/articleshow/98506578.cms">Sensex, Nifty50 decline after hawkish US Fed chair commentary; RIL, ICICI Bank, TCS among losers</a>

Maha proposes ₹547,450 crore budget with huge fiscal, revenue deficits

New Delhi, Dec 11 () With pressure on revenue collection, the goods and services tax (GST) rates and slabs may be raised during the GST Council meeting next week.
 The all-powerful GST Council, headed by Finance Minister Nirmala Sitharaman, is set to meet on December 18 in the backdrop of lower-than-expected GST collection and pending compensation to many states.
 As of now, there are four slabs under the GST regime -- 5, 12, 18 and 28 per cent. Goods and services under the 28 per cent category also attract cess over and above the rate, which ranges between 1 and 25 per cent.
 A group of officers from the Centre and states, which met on Tuesday to finalise recommendations for rate rationalisation, is said to have considered various options including raising rates from 5 per cent to 8 per cent and 12 per cent to 15 per cent, sources said.
 A detailed presentation on rate rationalisation will take place during the GST Council meeting.
 The GST Council meeting is also likely to deliberate on raising cess on some products to meet the growing need of compensation, among other issues.
 The Council can explore possibility of merger of slabs to bring down the number of slabs to three, sources said.
 It is likely to revisit exemption list and explore whether cess can be levied on some services, the sources added.
 The Central GST collection fell short of the Budget Estimate by nearly 40 per cent during the April-November period of 2019-20, according to government data.
 The actual CGST collection during April-November stood at Rs 3,28,365 crore, while the Budget Estimate is of Rs 5,26,000 crore for these months.
 In 2018-19, the actual CGST collection stood at Rs 4,57,534 crore as against the provisional estimate of Rs 6,03,900 crore for the year, he said.
 In 2017-18, the CGST collection was Rs 2,03,261 crore.
 Meanwhile, India's GDP growth slumped to a 26-quarter low of 4.5 per cent in the second quarter of the current financial year as gross value added to the manufacturing sector contracted for the first time in nine quarters.
 The last time GDP grew at a slower pace was in the fourth quarter of 2012-13, when it had expanded only 4.3 per cent.
 The compensation requirements have increased significantly and are unlikely to be met from the compensation cess being collected.
 This discussion is quite critical as lower GST and compensation cess collections have been a matter of concern in the past few months, according to a letter written by the GST Council to commissioner, SGST, of all states.
 The Council has sought suggestions, inputs or proposals as regards measures, on compliance as well as rates that would help in augmenting revenue. DP HRS

GST rates may go up for various items to meet revenue shortfall

New Delhi, Dec 17 () The GST Council will meet on Wednesday to review the taxation structure for shoring up the revenue as lower-than-expected collections has led to a delay in compensation payment to states.
 Some of the states such as West Bengal have opposed any hike in cess rates or rate calibration amid a slowdown in the economy, stating that consumers as well as the industry are passing through a distressing time. 
 With the revenue shortfall looming large, there have been suggestions for raising GST rate and cess to meet the gap. 
 The GST Council headed by Finance Minister Nirmala Sitharaman had sought suggestions from states on review of GST and compensation cess rates on various items, rate calibrations for addressing the inverted duty structure, compliance measures other than those currently under implementation to augment revenue.
 In a letter to Sitharaman, West Bengal Finance Minister Amit Mitra said states have received letter from the GST Council wherein suggestions have been sought on review of items currently under exemption for shoring up GST revenues. 
 "This is indeed alarming. We should not in any way tinker with the rate structure or impose any new cess at a time when the industry and consumers are going through the most distressing times with 'stagflation' knocking at our door (stagnation accompanied by growing inflation)," Mitra said.
Many economists, including former RBI Governor Raghuram Rajan, have expressed fear of India getting into a slow growth high inflation or stagflation mode.
 Rising food prices pushed retail inflation in November to an over three-year high of 5.54 per cent, while industrial sector output shrank for the third month in a row by 3.8 per cent in October, indicating deepening slowdown in the economy.
 India's economic growth slowed to a 6-year low of 4.5 per cent in the July-September quarter. With inflation rising, fears of stagflation -- a fall in aggregate demand accompanied by rising inflation -- have resurfaced.
 "Instead of increasing or imposing new taxes or cesses the GST Council has to collectively find ways and means to provide relief to industry so that they are able to tide over the present crisis...the solution of additional resource mobilisation lies not in tinkering with the rate structure but focus on anti evasion and fraud detection measures," Mitra said.
 Facing heat over delay in payment of GST compensation, the central government on Monday released Rs 35,298 crore to states to make up for the loss of revenue due to rollout of the Goods and Services Tax (GST).
 When GST was rolled out on July 1, 2017, states were through legislation promised to be compensated for the loss of revenue as not just their taxes such as VAT were being subsumed in the new levy but also their right to levy taxes was being snatched.
The compensation amount was fixed at 14 per cent on top of revenue in the base year of 2016-17. The corpus for paying compensation was collected by levying a cess on top of GST rates on tobacco products, cigarettes, aerated water, automobiles, and coal. 
 The Central GST collection fell short of the Budget Estimate by nearly 40 per cent during the April-November period of 2019-20, according to government data.
 The actual CGST collection during April-November stood at Rs 3,28,365 crore, while the Budget Estimate was Rs 5,26,000 crore for these months.
 According to sources, the Finance Ministry has set a Rs 1.1 lakh crore monthly GST collection target for the remainining four months of 2019-20 financial year
 Revenue Secretary Ajay Bhushan Pandey had a video conference meeting with top tax officials and impressed upon them to step up measures to achieve direct and indirect tax collection targets.
 Officers have been particularly urged to ensure that during field enforcement drive and visits, no taxpayer is overreached or troubled, the source said. DP MR
MR

GST Council to meet on Wed amidst talk of rate hike to meet revenue shortfall

<ul class="summary-list"><li><keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> said Thursday it has started sending "a significant export" of electricity to Romania.</li><li>President Zelenskyy <a href="https://www.president.gov.ua/en/news/ostriv-zmiyinij-ce-strategichnij-punkt-jogo-zvilnennya-znach-76149">said</a> it can help Europe with some of the energy shortfall caused by <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>.</li></ul>Ukraine said Thursday that it can help with Europe's energy supply after Russia cut countries off, and that it has already exported 100 megawatts of power to Romania.In a <a href="https://www.president.gov.ua/en/news/ostriv-zmiyinij-ce-strategichnij-punkt-jogo-zvilnennya-znach-76149">nightly video address</a> on Thursday, Ukrainian President Volodymyr Zelenskyy said his country's government has sent a "significant export of electricity" to Romania ⁠— a member of the EU ⁠— and is preparing to increase supply in the coming weeks."At the expense of Ukrainian electricity, a significant part of the Russian gas consumed by Europeans can be replaced," Zelenskyy said in his address.Zelenskyy appeared to be echoing comments made by Volodymyr Kudrytskyi, the chairman of Ukraine's power-system operator Ukrenergo, who said previously that Ukraine has a lot of electricity to spare after millions of people fled the country amid the war."We have a surplus of power, and neighboring countries — they all have deficits," Kudrytskyi said, <a href="https://affiliate.insider.com?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Feurope-turns-to-an-unlikely-source-to-replace-russian-energy-ukraine-11656244670">according to The Wall Street Journal.</a>Zelenskyy said that Ukraine would get revenue from exporting energy, and that Ukraine doing so would also benefit Europe: "That is, it is not just a question of export revenue for us, it is a question of security for the whole of Europe."Ukrainian Prime Minister Denys Shmyhal <a href="https://www.facebook.com/dshmyhal/posts/580522690304509">elaborated on Ukraine's energy export plans on</a> Thursday, saying the country has already sent an initial volume of 100 megawatts to Romania and has the potential to send up to 2.5 gigawatts to Europe in total."Under this scenario, the state will be able to receive more than 70 billion Ukraine hryvnia ($2.3 billion) per year," he said.Kudrytskyi said small amounts of electricity could also begin to flow to Slovakia and Hungary in early July.Russia has been gradually choking off natural gas supplies in retaliation for European sanctions and military support for Ukraine following its invasion.Germany — Europe's largest economy — has been particularly reliant on Russian President Vladimir Putin, receiving around <a href="https://www.businessinsider.com/germany-doesnt-want-too-successful-replacing-russian-natural-gas-renewables-2022-6">35% of its natural gas</a> from Russia as of last month. But after Russia's invasion of Ukraine, the country <a href="https://www.bmwi.de/Redaktion/EN/Pressemitteilungen/2022/03/20220325-minister-habeck-germany-is-quickly-cutting-its-dependence-on-russian-energy-but-we-still-need-to-act-prudently.html">vowed</a> to become largely independent of Russian gas by mid-2024.

Ukraine says it is exporting power to Europe and can help with countries' energy shortfall after Russia cut gas supply

<ul class="summary-list"><li>Getting money to state and local governments facing significant budget shortfalls remains on the back burner in Congress as stimulus negotiations drag on, with reported $600 <keyword id="9071639" type="UNKNOWN" weightage="60" keywordseo="stimulus-checks">stimulus checks</keyword> bumping budget relief from the latest $900 billion compromise deal.</li><li>Right from the start, the COVID-19 pandemic "triggered a severe state budget crisis," according to the nonpartisan Center on Budget and Policy Priorities.</li><li>Almost nine months since the $2.2 trillion CARES Act was passed by Congress and signed by President Donald Trump, state and local governments have already been cutting jobs and services.</li><li>Reduced consumer activity has left most municipal, county, and state governments with substantial revenue shortfalls, whether from sales taxes, highway tolls, parking fees, or public transportation fares.</li><li>Any remaining hope rests on the incoming Biden administration, with state and local governments approaching a fiscal cliff.</li></ul>The coronavirus pandemic proved to be a nightmare scenario for state and local governments by late April.Fewer people out and about meant <a href="https://www.marketwatch.com/story/state-sales-tax-receipts-plunge-as-much-as-41-in-april-amid-coronavirus-shutdowns-and-may-could-be-worse-2020-06-02">sales tax revenue took a nose dive</a>. More than 23 million Americans were unemployed at that point, a record since the Great Depression. And if the unemployment insurance payouts coupled with tax revenue drying up weren't suffocating enough, debt payments and essential services still need to be covered.Other revenue sources have also fizzled out, such as highway tolls, parking fees, or, in the case of New York City and others with substantial public transportation infrastructure, subway and bus fares. Ridership in the Big Apple, for instance, is still down 70% from pre-pandemic levels.Now, almost nine months since the $2.2 trillion CARES Act was signed by President Donald Trump, officials at the county and state level are looking over the edge of a fiscal cliff.<div type="image" title="tax foundation study rainy day fund" height="898" width="1156" msid="79787736" hostid="261"></div>The pandemic "triggered a severe state budget crisis," according to the nonpartisan <a href="https://www.cbpp.org/research/state-budget-and-tax/states-grappling-with-hit-to-tax-collections">Center on Budget and Policy Priorities</a> (CBPP). An overall estimate for the amount of lost revenue is difficult to pin down across cities, counties, and states, but officials in red and blue states alike have warned that essential services, including garbage pickup and policing, will face cuts if nothing is done by Congress.Already in New York, tight local budgets resulted in <a href="https://www.nytimes.com/live/2020/12/17/nyregion/winter-storm-gail?name=styln-winter-storm&amp;region=TOP_BANNER&amp;block=storyline_menu_recirc&amp;action=click&amp;pgtype=LegacyCollection&amp;impression_id=c7f63560-408d-11eb-8c9a-13d89acb4d31&amp;variant=show&amp;smid=tw-nytmetro&amp;smtyp=curp;smid=tw-nytmetro&amp;smtyp=cur">shoddy snow removal</a> in the aftermath of Thursday's nor'easter.But despite these dire warnings, <a href="https://www.washingtonpost.com/us-policy/2020/12/16/congress-stimulus-checks-relief/">state and local budget relief has been relegated</a> from negotiations around the $900 billion compromise stimulus package, essentially cast away for the rest of the lame-duck session so that $600 stimulus checks could have a chance at staying in the bill, according to <a href="https://www.washingtonpost.com/us-policy/2020/12/16/congress-stimulus-checks-relief/">The Washington Post</a>.Whether the direct payment checks make it into the final text remains to be seen, but early signs from party leadership indicate that the $600 checks came at the expense of state and local government aid as well as liability insurance for businesses, which had been a longstanding priority for Senate Majority Leader Mitch McConnell.Read more: <a href="https://www.businessinsider.com/mcconnell-stimulus-liability-protection-donors-lobbyists-2020-12">A powerful group of lobbyists and donors pushed Mitch McConnell to take a 'hard red line' that delayed a stimulus bill for months</a><h2>The myth of the so-called Blue State Bailout</h2>As is the case with many policy debates in American <keyword id="6358883" type="UNKNOWN" weightage="100" keywordseo="politics">politics</keyword>, Republicans got out front on the messaging side, with lawmakers calling state and local aid a "blue state bailout."McConnell began hammering home the term going back to late April, and <a href="https://www.businessinsider.com/cuomo-lays-into-mcconnell-over-states-going-bankrupt-2020-4">New York Gov. Andrew Cuomo responded with a notorious rant</a> on how much more the majority leader's home state of Kentucky gets in federal funds compared to what it contributes in revenue.Democrats have not countered the "blue state bailout" moniker with their own, at least not one with any widespread use. However, the partisan framing of the <keyword id="10451954" type="UNKNOWN" weightage="60" keywordseo="state-and-local-budget-crisis">state and local budget crisis</keyword> misses the mark.It is not actually the case that only Democratic-majority states have issues with outstanding debts and less revenue trickling in during the pandemic. Since 2018, <a href="https://www.statista.com/statistics/312660/us-state-and-local-government-debt-outstanding-by-state/#statisticContainer">the top five states by outstanding debt</a> have been California, New York, Texas, Illinois, and Florida, according to an October 2020 dataset by Statista.In sixth place is Pennsylvania, a perennial swing state in presidential elections that had a Republican supermajority in its legislature two years ago. If you want to see your state's overall debt situation, you can check the <a href="https://worldpopulationreview.com/state-rankings/debt-by-state">World Population Review's interactive page</a>.Another nonpartisan issue with the state and local budget crisis is employment. State and local governments <a href="https://www.brookings.edu/blog/the-avenue/2020/08/03/state-and-local-governments-employ-the-highest-share-of-essential-workers-congress-is-failing-to-protect-them/">employ the highest share of essential workers</a> nationwide, but the pandemic triggered widespread layoffs and furloughs.State and local governments employ around 16 million people, or roughly 10% of the total US workforce, according to a <a href="https://www.brookings.edu/policy2020/votervital/public-service-and-the-federal-government/">Brookings Institution study</a>.With unemployment still well above pre-pandemic levels at 6.7%, adding a significant portion of those 16 million government workers to the 10.7 million people already without work could prove catastrophic.<h2>Hopes riding on Biden</h2>Getting money to states for revenue shortfalls does not have the same urgency behind it as direct payments, extending unemployment insurance, or a second round of the Paycheck Protection Program (PPP) loans for small businesses. Unemployment insurance and PPP loans have remained fixtures through months of talks, and direct payments have quickly risen as a priority among Republican leadership, reportedly because of its <a href="https://www.businessinsider.com/mcconnell-wanted-covid-19-stimulus-checks-help-georgia-runoffs-nyt-2020-12">implications for the Senate runoffs in Georgia</a>.The biggest thing keeping state and local budget aid on the back burner is the incoming administration, with President-elect Joe Biden repeatedly promising to press Congress for it once he takes office on January 20.Legislatively, the Senate majority could change by that point if both John Ossoff and Raphael Warnock oust Sens. David Perdue and Kelly Loeffler in the pair of elections in the Peach State on January 5.However, even if Democrats are able to sweep the runoffs and rely on Vice President-elect Kamala Harris as the 51st vote, more conservative members in the caucus like Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona will be closely watched as possible defectors on any package with a big price tag.Governors like Cuomo in New York and Phil Murphy in New Jersey have still said they are counting on the Biden administration to come through, despite all of these variables.Once the compromise stimulus package is settled in the lame-duck session, various lawmakers' willingness to embrace debt spending could play out more in public comments. Republicans have already <a href="https://www.businessinsider.com/why-republicans-havent-passed-a-new-covid-19-stimulus-bill-2020-10">changed their posture around government spending since the passage of the CARES Act</a>, returning to a more staunch stance compared to how they approached budgetary issues during the Trump administration as both the deficit and national debt grew, totalling <a href="https://www.marketwatch.com/story/trump-added-about-3-9-trillion-to-deficits-so-far-budget-group-says-11599669921">almost $4 trillion</a>.Until then, state and local governments will have to face cuts in services, layoffs, and other difficult decisions.

How the state and local budget crisis got left behind in the stimulus talks, losing out to $600 checks

<ul><li>Rivian stock tumbled Friday after reporting its first quarterly results as a public company late Thursday.</li><li>The maker of electric pickup trucks revealed it will fall short of its 2021 production target due to supply-chain constraints.</li><li>Rivian also announced the construction of a new factory in Georgia, with EV production expected to begin in 2024.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_source=markets" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell.</a></li></ul><a href="https://markets.businessinsider.com/stocks/rivn-stock">Rivian stock</a> sank Friday after revealing late Thursday that production of electric trucks this year would fall short of its target.The EV startup made the disclosure in its first quarterly report since last month's <a href="https://markets.businessinsider.com/news/stocks/rivian-stock-price-ipo-debut-valuation-100-billion-ford-gm-2021-11">blockbuster initial public offering</a>, which catapulted its market cap past <a href="https://markets.businessinsider.com/stocks/f-stock">Ford's</a> and <a href="https://markets.businessinsider.com/stocks/gm-stock">General Motors</a>'.But like the rest of the global auto industry, Rivian is suffering from supply-chain constraints that are holding back production. The disruptions mean the company will come "a few hundred vehicles short" of its goal to produce 1,200 vehicles by the end of 2021, according to a third-quarter <keyword id="6357061" type="UNKNOWN" weightage="60" keywordseo="earnings" source="Orion">earnings</keyword> statement.Shares of Rivian tumbled as much as 15% to an intraday low of $92.62 but pared losses to 14% by 10:15 a.m. ET. <a href="https://markets.businessinsider.com/stocks/lcid-stock">Lucid Group</a>, another recently public EV startup, was down 8%.Rivian also confirmed plans to build a new factory in Georgia, which will add to its existing production capacity in Normal, Illinois. Construction on the $5 billion plant will begin in summer 2022, with production of EVs expected to start in 2024. Rivian is building the R1T truck, the R1S SUV and delivery vans. The company has emerged a top potential rival to <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a>, which is also developing an electric pickup truck to go with its electric SUV.As Rivian struggles with supply issues, about 2,000 pre-orders are rolling in each week. Combined preorders for the electric truck and SUV climbed to 71,000 as of December 15 from 55,400 at the end of October, the company said.But for now, actual sales are still limited. Third-quarter revenue came in at just $1 million as deliveries of its first EVs began in September. Rivian posted a net loss of $1.2 billion, or $12.21 a share, and an adjusted operating loss of $776 million.

Rivian sinks 15% after first earnings report since IPO reveals production shortfall

A total of 13 states have so far decided on their borrowing options to meet their <keyword id="9933255" type="UNKNOWN" weightage="20" keywordseo="gst-compensation-shortfall">GST compensation shortfall</keyword> and almost all have decided to go for the first option proposed by the Centre, source said. Out of the 13, 12 states have opted for the first option, under which the Union government has offered states that they could borrow the shortfall arising out of GST implementation, estimated at Rs 97,000 crore approximately. The amount would be borrowed through issue of debt under a special window coordinated by the Finance Ministry. The first option is to ensure steady flow of resources similar to the flow under <keyword id="2600993" type="PERSON" weightage="20" keywordseo="GST-compensation">GST compensation</keyword> on a bi-monthly basis. Under this option, the Centre will endeavour to keep the cost at or close to the G-secs yield, and in the event of the cost being higher, will bear the margin between G-secs and average of State Development Loan yields up to 0.5 per cent through a subsidy. The states which have preferred to opt for this option are Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Madhya Pradesh, Meghalaya, Sikkim, Tripura, Uttar Pradesh, Uttarakhand and Odisha. Only Manipur has so far opted for the second borrowing option under which states can borrow the entire compensation shortfall of Rs 2.35 lakh crore, including the Covid-impact portion, through issue of market debt. Six more states -- Goa, Assam, Arunachal Pradesh, Nagaland, Mizoram and Himachal Pradesh -- will be giving their choice in a day or two, said people in the know. A few states have submitted their views to the Chairperson of the GST Council but are yet to decide on the options, according to sources. In the 41st GST Council meeting last month, the Centre had proposed both options, so that a mechanism could be put in place as an exception this year, as Covid-19 disruptions and lower revenue collections have made it difficult for the Centre to meet its obligation on Goods and Services Tax (GST) compensation to states. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-future-retail-ril-irctc-bhel-tata-motors-adani-green-vodafone-idea-godrej-properties-sunteck-realty-and-more/articleshow/78097615.cms">Top stocks to watch— Future Retail, RIL, IRCTC, BHEL, Tata Motors, Adani Green, Vodafone Idea, Godrej Properties, Sunteck Realty and more</a> <a href="https://www.businessinsider.in/india/news/delhi-police-arrests-umar-khalid-connection-with-northeast-delhi-riots/articleshow/78097740.cms">Delhi Police arrests Umar Khalid in connection with Northeast Delhi riots</a> <a href="https://www.businessinsider.in/tech/news/tiktok-owner-bytedance-rejected-microsofts-offer-for-the-apps-us-operations/articleshow/78097018.cms">TikTok owner ByteDance rejected Microsoft's bid for the app's US operations, Oracle reportedly chosen as US 'technology partner'</a>

13 states decide on GST compensation — only Manipur opts for borrowing entire shortfall in one go

<ul class="summary-list"><li>Russia logged a nearly 50% drop in oil and gas revenue in January, contributing to a wider budget deficit. </li><li>Moscow's spending surged by nearly 60% as the war against Ukraine ordered by Russian President Vladimir Putin neared the one-year mark. </li></ul>A slide in Russian revenue from oil and gas clashed against the Kremlin ramping up spending on its nearly year-long war against Ukraine, resulting in a wider budget deficit for the country in January.Oil and gas revenue tumbled 46% in January from the same month a year ago to 426 billion rubles ($5.96 billion), <a href="https://minfin.gov.ru/ru/press-center/?id_4=38368-predvaritelnaya_otsenka_ispolneniya_federalnogo_byudzheta_za_yanvar_2023_goda" target="_blank" rel="noopener">Russia's finance ministry said Monday</a> in a preliminary release. It attributed the decline largely to a drop in prices for its Urals blend — its largest crude oil export — and to a fall in exports for natural gas. Russia sold Urals at an average price of $49.48 per barrel in January, lower than the $70 per barrel total in Russia's budget, <a href="https://www.ft.com/content/3def31b3-ca3d-4d6b-8add-3008ac6dfb44" target="_blank" rel="noopener">according to the Financial Times</a>. Revenue from oil and gas serves as a key source of funding for spending by Moscow, but the country has run into sanctions imposed by Western countries after Russia invaded Ukraine.Government spending in January, meanwhile, jumped by 58.7% from a year earlier to 3.12 trillion rubles. Expenditures rose amid largely classified plans by Russia to increase defense spending to 3.5 trillion rubles in 2023, the FT reported. The lower energy sales and the rise in spending contributed to the federal budget logging a deficit of 1.76 trillion rubles ($24.78 billion) last month. Russia has been selling energy to countries, including China and India, to boost its funds. Russia has also increased sales of its foreign exchange reserves to address the budget shortfall stemming from the war it launched in February 2022. Last week, the finance ministry said it would <a href="https://markets.businessinsider.com/news/currencies/russia-china-yuan-renminbi-reserves-ruble-forex-sales-energy-revenue-2023-2">sell more than $2 billion worth of foreign currency</a> from February 7 to March 6 – nearly tripling the 54.5 billion rubles worth of currency reserves sold last month.

Russia's oil and gas revenue crashed by nearly 50% at the start of 2023, leading to a wider budget deficit as Moscow's spending soars

<ul class="summary-list"><li>A <keyword id="6420764" type="UNKNOWN" weightage="60" keywordseo="deficit" source="Orion">deficit</keyword> is the shortfall between two measurements, such as earnings and spending.</li><li>When the government spends more than it takes in as revenue, that creates a deficit.</li><li>Not all deficits are bad, even though they can accumulate to create debt.</li></ul>A deficit can be any type of negative gap between two benchmarks. A basketball team could have a deficit of 10 points if they're down 80-70 in the fourth quarter, or you could have a personal budget deficit of $1,000 if you're bringing home $5,000 per month but spending $6,000. Oftentimes, however, the term deficit applies to governments, such as with trade deficits between two countries or budget deficits when spending outpaces tax and other revenue sources.While a deficit implies a shortfall, you shouldn't assume that all deficits are bad or that a large deficit is automatically worse than a small deficit. Much depends on the context. And, when referring to government deficits, politics can play a role in terms of how people view the impact of deficits. <h2>Understanding how deficits work </h2>Deficits comprise two distinct measures, with one being the baseline number you're trying to reach and another being the current amount that's below that baseline. And deficits can be personal, corporate, or even governmental in nature.For example, when spending outpaces earnings, that creates a deficit. A company might earn $1 million in revenue per year, but if they're spending $2 million annually on salaries, office space, software, etc., then they'll have a $1 million deficit. So, they'll need to come up with a way to cover that shortfall, whether that's taking on a loan or burning through savings. That said, this deficit might be part of a company's growth strategy, as ramping up spending could be needed to establish the company so that it's viable long-term. Then there are government deficits, which work a bit differently, especially at the federal level. In general, there are two primary types of deficits to know about: budget deficits and trade deficits, which will be covered later. And as mentioned before, deficits aren't always necessarily bad — depending on who you ask. "Absence of deficits could concern the average person more than deficits themselves. This is because government deficit spending is typically employed in response to a weakening <keyword id="11893570" type="UNKNOWN" weightage="60" keywordseo="economy" source="Orion">economy</keyword>," says <a href="https://www.adelphi.edu/faculty/profiles/profile.php?PID=0079" target="_blank" rel="noopener">Mariano Torras</a>, Ph.D., Chair, Department of Finance and Economics at Adelphi University.Deficits are typically measured over distinct periods, such as quarterly or annually. Deficits create debt, but debt is a measure of what's owed at a specific point in time based on the accumulation of deficits, Torras adds.The federal government not only has far more access generally to borrow money to cover deficits, but it can also print money to close any gaps. That's not to say that the government will definitely print more to spend as much as it wants, but it essentially gives the government more leeway to spend than an individual could. Plus, the government has more levers to pull to affect the impact of deficits, such as raising taxes to shrink deficits.Note: The federal government has the ability to print money to shrink deficits. Even if this capability is rarely used, the option exists.<h2>Types of government deficits </h2>Two of the most common types of government deficits include budget deficits and trade deficits.<h3>Budget deficits </h3>A budget deficit occurs when a government spends more than it receives, primarily from taxes. This can occur at various levels of government, though some non-federal governments have rules that aim to prevent deficits, such as balanced budget amendments at the state level. In theory, that would leave state governments without a deficit or surplus, but projections might be off, or the rules might not be strict enough to avoid deficits. <h3>Trade deficits</h3>With trade deficits, a country in deficit imports more goods and services than it exports to another country. "Most economists believe that the most important thing is that trade deficits or surpluses should not be too large. But there are some — we call them neo-mercantilists — who believe that exporting countries are stronger than importing countries. I agree with the first but also do not entirely disagree with the second," says Torras.Note: Trade deficits aren't necessarily about winning or losing. Much depends on specifics like the size of the deficit and why it might exist, such as to feed consumer demand.<h3>Causes </h3>Deficits are caused by spending more than what you take in, or by generating less than a designated benchmark. Some causes of deficits include the following scenarios:<ul><li>Purposeful deficits: In some cases, those who get into a deficit do so willingly. For example, in recent years, when the federal government sets its annual budget, it knowingly projects the annual deficit based on spending intentions outpacing projected revenue. </li><li>Unintentional deficits: Sometimes a government or company gets into a deficit (or a larger deficit than intended) due to unexpectedly spending more than anticipated or by collecting less revenue than planned. For example, a recession could cause tax revenues to plummet, so even if the government planned to spend less than it taxed, that might not always pan out. That's because factors such as layoffs and pay cuts can lead to less income tax collections, and stock market drops can reduce capital gains taxes.</li><li>Lower production: Deficits can also be caused by simply not having or producing as much as someone else, such as in the case of a points deficit in sports. Or, a government could have a trade deficit with another country if it exports more than it imports. </li></ul><h2>Real-world example of a deficit </h2>In 2020, ​​the US exported $164.9 billion to China and imported $450.4 billion. So, the 2020 US trade deficit with China totaled $285.5 billion, as it's the difference between the imports and exports. Trade deficits between countries can sometimes take on more political weight, such as when the Trump administration instituted tariffs in an attempt to try to shrink the trade deficit between the US and China, among other trade partners. In response, however, countries like China placed tariffs of their own on US exports, making it harder to shrink the trade deficit.<h2>The financial takeaway</h2>Overall, deficits represent shortfalls, but that's not always a bad thing. Owing money due to a deficit does matter, but it could be a purposeful strategy, such as if a company is in growth mode and needs to spend a lot to grow market share before it can become profitable. For the government, deficits can also potentially be positive. During a down economic period, for example, a government deficit could inject spending into the economy to turn things around. A trade deficit also isn't necessarily worse than a surplus, especially if imports enable a country to gain much needed resources.

Understanding deficits — when spending outpaces revenue for a company or government

<ul class="summary-list"><li>Nearly half of US sports bettors placed an illegal bet over the past year.</li><li>It's costing state government millions in tax revenue.</li></ul>Millions of Americans <a href="https://www.americangaming.org/resources/2022-fifa-world-cup-wagering-estimates/">placed bets on the World Cup</a> over the past month, but <a href="https://frontofficesports.com/u-n-illegal-sports-betting-reaches-1-7t-annually/">many likely did so illegally</a>. Illicit sports betting — and illegal gambling more broadly — is costing states millions in tax revenue, and someday, taxpayers could be called upon to foot part of the bill.Americans are projected to place $100 billion in legal sports bets this year through platforms like DraftKings, FanDuel, and BetMGM, according to a November <a href="https://www.americangaming.org/resources/sizing-the-illegal-and-unregulated-gaming-markets-in-the-u-s/">American Gaming Association</a> report, which included a September survey of over 5,200 US adults. At that time, <a href="https://www.pewresearch.org/fact-tank/2022/09/14/as-more-states-legalize-the-practice-19-of-u-s-adults-say-they-have-bet-money-on-sports-in-the-past-year/">35 states plus D.C.</a> had legalized sports betting in some form, either online, in-person, or both.But the report also found 49% of sports bettors have placed at least one bet with an illegal operator over the past year — 15% did so for all their bets — and estimated these operators account for nearly 40% of the US sports betting market. These operators tend to be <a href="https://www.americangaming.org/illegal-sports-betting/">online sportsbooks based in other countries</a>. For state governments across the country, this <a href="https://www.bloomberg.com/news/articles/2021-12-09/illegal-sports-betting-nears-1-7-trillion-annually-u-n-says">isn't just a legal problem</a>. Illegal sports betting is costing them millions in tax revenue — an estimated $700 million in total revenue per year, per the AGA report. Legal sports betting has surged in the US since the <a href="https://www.businessinsider.com/supreme-court-sports-betting-decision-what-it-means-2018-5">Supreme Court paved the way for it in 2018</a>. As of November, it's <a href="https://www.actionnetwork.com/news/legal-sports-betting-united-states-projections">legal to bet on sports</a> in 31 states plus D.C. It's legal, but not yet operational, in five others. Legalization has been a <a href="https://news.bloombergtax.com/tax-insights-and-commentary/states-are-betting-on-tax-revenue-from-online-sports-wagering">boon for states' tax coffers</a>, and is among the reasons <a href="https://www.pewtrusts.org/en/research-and-analysis/articles/2022/09/07/tax-revenue-in-most-states-surpasses-pre-pandemic-growth-trend">many states' tax revenues have fully recovered</a> from a pandemic dip. New York state for instance, is on track to collect over $650 million dollars in <a href="https://www.gamingtoday.com/revenue/">tax revenue from sports betting</a> this year, per one projection. If the <a href="https://markets.businessinsider.com/news/stocks/recession-outlook-2023-q1-forecast-inflation-stock-market-recommendations-bofa-2022-12">US enters a recession</a>, however — as many experts expect it to in 2023 — state governments <a href="https://taxfoundation.org/income-taxes-are-more-volatile-than-sales-taxes-during-recession/">might see their tax revenues stall</a>. States lost nearly a third of total tax revenues during the Great Recession, per an <a href="https://www.ibrc.indiana.edu/ibr/2013/fall/article2.html">Indiana Business Review</a> analysis. If an economic downturn does come, and if states raise taxes down the road to make up the revenue shortfall, illegal sports gambling could be among the reasons why.<h2>Other forms of gambling are costing states even more money</h2>Despite its prominence on many <a href="https://www.npr.org/2022/06/18/1104952410/sports-betting-ads-sports-gambling">commercials and billboards</a>, many gamblers aren't betting on sports. Per the AGA report, sports betting accounts for under 10% of the illegal total gambling market in the US. Online slots and table games, as well as unregulated machines, account for over 90% the industry's total legal revenues. These forms of gambling are prominent among illegal gamblers as well, and they're costing states far more in tax revenue than sports betting — over $10 billion combined per the AGA report. 48% of online slots and table games gamblers reported betting at least once illegally over the past year, and an estimated 40% of all <a href="https://www.americangaming.org/resources/sizing-the-illegal-and-unregulated-gaming-markets-in-the-u-s/">gaming machines in the US are unlicensed</a>. Per the report, unregulated machines can be found in some bars, convenience stores, and gas stations.Moving forward, the <a href="https://www.theguardian.com/sport/2022/may/13/sports-gambling-125-billion-anniversary">growth of legal gambling</a> may slowly chip away at the number of illegal bettors. While law enforcement has made efforts to <a href="https://www.casino.org/news/illegal-sports-betting-operation-leads-to-massachusetts-jail-sentence/">go after some illegal operators</a> in the US, it's more difficult to <a href="https://props.com/shutting-down-illegal-gambling/">stop offshore sites</a>. individual bettors in the US <a href="https://www.latimes.com/sports/story/2022-01-30/super-bowl-2022-betting-illegal-in-california">are unlikely to face legal consequences</a>. Some Americans may unwittingly continue to bet with illegal operators. Prior AGA research has found over half of Americans that bet illegally <a href="https://www.americangaming.org/resources/2020-survey-of-american-sports-bettors/">believe what they're doing is legal</a>.Others may simply have grown used to illegal operators and not want to switch as a result. A similar development is happening in <a href="https://www.businessinsider.com/cannabis-ceos-grey-market-sellers-in-new-york-erode-profits-2022-3">states that have legalized marijuana</a>, where some consumers are continuing to <a href="https://www.politico.com/news/2022/11/13/california-black-market-weed-new-york-00066470">turn to the illicit cannabis market</a> out of habit.

You Searched For "revenue shortfall" and got 12 results

Govt plans to borrow ₹7.5 lakh crore from market in first half of FY25

PTI

Roku plunges 27% as the streaming service flags 'recessionary fears' alongside shortfall in quarterly results and weak outlook

Carla Mozée

Maha proposes ₹547,450 crore budget with huge fiscal, revenue deficits

IANS

GST rates may go up for various items to meet revenue shortfall

PTI

GST Council to meet on Wed amidst talk of rate hike to meet revenue shortfall

PTI

Ukraine says it is exporting power to Europe and can help with countries' energy shortfall after Russia cut gas supply

Sophia Ankel

How the state and local budget crisis got left behind in the stimulus talks, losing out to $600 checks

Jake Lahut

Rivian sinks 15% after first earnings report since IPO reveals production shortfall

Jason Ma

13 states decide on GST compensation — only Manipur opts for borrowing entire shortfall in one go

IANS

Russia's oil and gas revenue crashed by nearly 50% at the start of 2023, leading to a wider budget deficit as Moscow's spending soars

Carla Mozée

Understanding deficits — when spending outpaces revenue for a company or government

Jake Safane

Nearly half of sports gamblers like those who bet on the World Cup still do it illegally, and it's costing your state millions in tax revenue

Jacob Zinkula

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