Government borrowing plays an important role in government's finances to meet its spending requirements. In the current fiscal, the government has decided to stay with the borrowing programme as announced in the Budget 2019. This has cheered the markets and kept yields in check. In the Budget speech, the finance minister also announced borrowing from overseas market but later on dropped the plan owing to currency risks. Let's try to understand the term government borrowing and look into ways how the government meets its fiscal targets. What is government borrowing?Government borrows through issue of government securities called G-secs and Treasury Bills. Borrowing is a loan taken by the government and falls under capital receipts in the Budget document. It is essentially the total amount of money that the central government borrows to fund its spending on public services and benefits. As the tax and non-tax revenue fall short in financing government's spending programme, the … [Read more...] about What is government borrowing? How it impacts fiscal deficit?
Fiscal year 2016 budget
Indian financial market will look for improved transparency in the Union Budget announcements next month, according to a report by Singapore banking group DBS. “Any reduction in the fiscal deficit could result in a negative credit impulse in the near-term, but will need to be balanced with a credible consolidation plan further-out,” according to the the bank's research report “India Budget Preview: Loosening the purse” released on Thursday. The report noted that fiscal deficit in the first eight months of FY20, stood at 15 per cent above target, driven by weak revenues. At an aggregate level, expenditure has been in line with the budget trend. The fiscal tear-to-date (FYTD) deficit overshoot is not out of sync with past trends, it added. “This is because, typically, the fiscal run-rate worsens for three-fourths of the year and then moderates in the final quarter as expenditure is scaled back and seasonal revenue flows kick-in,” wrote DBS … [Read more...] about Markets eye improved transparency in Budget: Report
The Fairfax County School Board will adopt the advertised budget on Feb. 6, and the county's advertised budget will be presented on Feb. 25. The Board of Supervisors will vote to adopt the budget on May 5, and the School Board will adopt the approved budget on May 21. … [Read more...] about Employee Pay Emphasized In Proposed Fairfax County Schools Budget
“This is not going to happen overnight,” said Andrew Cullen, a United Way of Central Indiana consultant who’s helping lead a lobbying effort for expansion. “Some parts of the state are ready for an expansion and others still have some work to do but they need the funding to be ready for an expansion.” … [Read more...] about Indiana budget doubts loom over pre-K, school funding
A sharp shortfall in overall revenues is likely to widen the country’s fiscal deficit in the current fiscal year, a former finance secretary has said. “Actual tax performance has been quite poor. In this, major policy decision of the government to reduce corporate tax rates (desirable as it was considering very high corporate tax rates in the country) has also contributed. Personal income taxes are also growing at very small rate. GST revenues are also not very robust. There is substantial shortfall visible in excise duties and customs duties, which had a very high asking rate this year. There is every likelihood that there would be a shortfall of Rs 2 lakh crore, plus/minus 25,000 crore, in the tax revenues this fiscal,” Subhash Chandra Garg said in a blog post. He said only 20 per cent of the disinvestment target of Rs 1.05 lakh crore has been achieved and expressed doubts whether the government will be able to go ahead with the strategic selloff in three large … [Read more...] about Fiscal deficit may widen to 3.7-4% of GDP: Ex-fin secy