Slowdown dents growth, Q2 GDP growth falls to 4.5%
Slowdown in manufacturing activity pulled India's GDP growth rate in second quarter (Q1) ended September down to 4.5 per cent, marking the fifth successive quarter of decline.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Centre's fiscal deficit to be about 3.7% in FY20: Moody's
    Ratings agency Moody's Investors Service has projected Centre's fiscal deficit to be about 3.7% of the gross domestic product (GDP) in 2019-20, which will be slightly wider than the 3.4% posted in fiscal 2019.
     
    The government has kept a fiscal deficit target of 3.3% of the GDP for 2019-20.
     
    The agency, in a report, said the persistent spending pressures and slower economic growth will result in continued widening of the fiscal deficit.
     
    "At fiscal year-end March 2020 (fiscal 2020), we project government deficit will be about 3.7 per cent of gross domestic product (GDP) for the Central government and around 3 per cent for states, adding up to a general government deficit of about 6.7 per cent," the report said.
     
    In the report, the agency cited that large fiscal deficits of some state governments will also constrain Centre's medium-term consolidation goals.
     
    According to the agency, Indian states, which do not generate sufficient revenue sources for their spending needs, remain dependent on Central government's grants. These states have recorded larger deficits in recent years.
     
    "The introduction of the GST replaced many indirect taxes previously levied by the states, reducing the share of own source revenue in their total revenue. As a result, states now rely on the Central government or the GST Council for a majority of their revenue, with variations across states," the report said.
     
    "Moreover, GST revenue has been below expectations since its launch, though the Central government has agreed to compensate states for any revenue shortfalls due to the GST for five years."
     
    States' gross borrowing needs are budgeted at Rs 7.5 trillion ($104 billion or 3.4 per cent of the national GDP) for fiscal 2020, a 28 per cent increase over fiscal 2019. levels.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Nakul Kumar Reddy

    2 weeks ago

    Don't misunderstand me if I speak any violating words, forgive me
    If u launch right now iam willing to shift to Chennai.

    Growth May Be Slow, but There Won't Be Any Recession, Says Nirmala Sitharaman
    Finance minister (FM) Nirmala Sitharaman on Wednesday told the Rajya Sabha that even though the gross domestic product (GDP) growth of India might have come down, the country had not entered a recessionary phase. 
     
    Speaking in the Rajya Sabha during a debate on the state of economy, Ms Sitharaman says, "Growth may be down, but there will not be any recession. If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever."
     
    According to the minister, India's real GDP growth was at 6.4% at the end of 2009-2014, whereas between 2014-2019 it was at 7.5%. 
     
    Regarding the high NPAs (non-performing assets) in the banking sector, she said it started increasing after the lenders begun recognising bad loans. Provisioning for bad loans didn't mean writing-off these NPAs, Ms Sitharaman added.
     
    While the FM was giving her reply, members of Parliament (MPs) from opposition parties staged a walk out.
     
    Meanwhile according to IANS, reporters in Parliament observed that MPs and ministers were found sleeping during the debate on the economic slowdown in the Rajya Sabha.
     
    There was a sequence to the events, as one MP started dozing while the FM was speaking. A little bit more into the reply and a second MP was also spotted dozing. Thereafter, minister of state for finance, Anurag Thakur was spotted trying to wake up the MPs from their slumber.
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    COMMENTS

    shadi katyal

    2 weeks ago

    Does she knows the difference of slow down and recession. For past 6 years economy has been sacrificed for religious vote banks and wrong GDP data and every Cabinet member ha denied slow down but now maybe a sliver of light is opening the eyes
    Is her anyone in the wholle BJP group knows what is happening to the nation?

    P S Krishnan

    2 weeks ago

    When you fudge data, there won't be any recession

    Nakul Kumar Reddy

    2 weeks ago

    Good

    Ranbir Lamba

    2 weeks ago

    Partial confession

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