Skip to content
Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Primary Menu Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us
  • Featured
  • Politics & Society

India Plans To Cut Spending To Curb Deficit, May Hurt Growth

Jan 7, 2020 | Pratirodh Bureau

FILE PHOTO: A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad on September 20, 2018

India’s government is likely to cut spending for the current fiscal year by as much as 2 trillion rupees as it faces one of the biggest tax shortfalls in recent years, three government sources said.

Asia’s third largest economy, which is growing at its slowest pace in over six years because of lack of private investment, could be hurt further if the government cuts spending.

But with a revenue shortfall of about 2.5 trillion rupees, the government has little choice to keep its deficit within “acceptable limits”, the first official, who did not want to be named, told Reuters.

The government has spent about 65% of the total expenditure target of 27.86 trillion rupees till November but reduced the pace of spending in October and November, according to government data. A 2 trillion-rupee reduction would be about a 7% cut in total spending planned for the year.

In October and November, government spending increased by 1.6 trillion rupees, nearly half the 3.1 trillion it spent in September. The fiscal year starts April 1 and ends March 31.

Lack of demand and weak corporate earnings growth in the economy led to lagging tax collections this year. Analysts said growth will be hurt.

“When the private investment has slowed so much, this will definitely drag down growth further,” said Rupa Rege Nitusure, chief economist at L&T Financial.

India’s economic growth slowed for six consecutive quarters to 4.5% in July-September, despite a 135-basis-point cut in interest rates by the central bank since February 2019.

Now, even the Reserve Bank of India seems to have become more worried about inflation rising. It kept its key lending rate on hold on December 5, even though it slashed its growth forecast for the current fiscal to 5%, which would be the lowest in a decade.

Even a surprise corporate tax rate cut announced by Finance Minister Nirmala Sitharaman earlier this year failed to spur private investment in the economy.

The government is likely to keep the fiscal deficit under 3.8% of gross domestic product, sources said, while letting it slip from its earlier set target of 3.3% for the year.

The government is likely to announce additional borrowing of 300 billion to 500 billion rupees for the current year to match the revised fiscal deficit, two sources in the government said.

Tags: Asia’s third largest economy, biggest tax shortfalls, corporate tax rate cut, expenditure target, Finance Minister Nirmala Sitharaman, fiscal deficit, gdp, gross domestic product, inflation, interest rates, key lending rate, lagging tax collections, Pratirodh, private investment, revenue shortfall

Continue Reading

Previous प्रचंड बहुमत वाली मोदी सरकार के क्यों विरोधी हो रहे यूथ?
Next No Attacker Named By Cops, But FIR Against Aishe Ghosh

More Stories

  • Featured

Civilian Deaths In Russia-Ukraine Conflict Very Disturbing: India

15 hours ago Pratirodh Bureau
  • Featured

Kanhaiya Lal Went To Police Claiming Threat To His Life

16 hours ago Pratirodh Bureau
  • Featured

‘Journalists Shouldn’t Be Jailed For What They Write, Tweet, Say’

22 hours ago Pratirodh Bureau

Recent Posts

  • Civilian Deaths In Russia-Ukraine Conflict Very Disturbing: India
  • Kanhaiya Lal Went To Police Claiming Threat To His Life
  • ‘Journalists Shouldn’t Be Jailed For What They Write, Tweet, Say’
  • ‘Muslims Will Never Allow Taliban Mindset To Surface In India’
  • Recording Mangrove Damage From Cyclones In The Sundarbans
  • Editors’ Guild Condemns Mohd Zubair’s Arrest
  • US SC’s Abortion Verdict Reverses Decades Of Progress: Activists
  • JNUTA, Others Demand Teesta’s Release
  • SC Nod To Hear Plea Alleging Hate Crimes
  • SIO Condemns Teesta’s Arrest By Guj Police
  • I Will Compete With Myself At CWG: Chanu
  • ‘Agnipath’ Scheme A Fraud: Satya Pal Malik
  • NCPCR’s Draft Guidelines For The Protection Of Child Artistes
  • 26/11 Attack Handler Jailed For 15 Years In Pak
  • No Material To Support ’02 Godhra Riots Were Pre-Planned: SC
  • SC Abortion Ruling: US Draws Criticism From Closest Allies
  • Omar Introduces Anti-India Resolution In House
  • Women Heads Of State And State Of Feminism
  • Apex Court Dismisses Plea Against SIT Clean Chit To Modi
  • Climate Change: How Myanmar’s Military Rule Makes It More Vulnerable

Search

Main Links

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us

Related Stroy

  • Featured

Civilian Deaths In Russia-Ukraine Conflict Very Disturbing: India

15 hours ago Pratirodh Bureau
  • Featured

Kanhaiya Lal Went To Police Claiming Threat To His Life

16 hours ago Pratirodh Bureau
  • Featured

‘Journalists Shouldn’t Be Jailed For What They Write, Tweet, Say’

22 hours ago Pratirodh Bureau
  • Featured

‘Muslims Will Never Allow Taliban Mindset To Surface In India’

22 hours ago Pratirodh Bureau
  • Featured

Recording Mangrove Damage From Cyclones In The Sundarbans

2 days ago Pratirodh Bureau

Recent Posts

  • Civilian Deaths In Russia-Ukraine Conflict Very Disturbing: India
  • Kanhaiya Lal Went To Police Claiming Threat To His Life
  • ‘Journalists Shouldn’t Be Jailed For What They Write, Tweet, Say’
  • ‘Muslims Will Never Allow Taliban Mindset To Surface In India’
  • Recording Mangrove Damage From Cyclones In The Sundarbans
Copyright © All rights reserved. | CoverNews by AF themes.