States push for more fiscal room, seek expansionary Union budget
3 weeks, 4 days ago

States push for more fiscal room, seek expansionary Union budget

Live Mint  

State governments on Friday sought extra headroom for their borrowings and greater fiscal support for their capital expenditure from the Centre, while advocating an expansionary union budget for FY26 to arrest an economic slowdown and a weakening currency. Ministers from 28 states, including some of the chief ministers and deputy chief ministers, attended Union finance minister Nirmala Sitharaman’s budget consultations on Friday in Jaisalmer. Centre’s capex support States asked the central government to raise the allocation for the 50-year interest-free loans given to them, and greater flexibility in its usage. Centre’s total allocation to states for capex in the current financial year is ₹3.9 trillion, as per union budget documents.

Growth States State Minister Centre Mint Expenditure Union Budget Fiscal Room  minister  union  budget  states  sought  centre  seek  support  push  growth  fiscal  room  expenditure  state  expansionary

History of this topic

Infrastructure: Sitharaman will need to juggle conflicting demands in budget
1 day, 6 hours ago

Infrastructure: Sitharaman will need to juggle conflicting demands in budget

Live Mint  

The government significantly increased infrastructure spending post-covid as the pandemic severely hurt public consumption, while private investments and exports tanked. The government has pledged to keep infrastructure spending at 3.4% of GDP as India needs to overcome infrastructure shortcomings, not just physical but also social and digital as it aims to become a developed nation by 2047. This became clear …

Centre weighs easing conditions for interest-free capex loans to states
1 week, 2 days ago

Centre weighs easing conditions for interest-free capex loans to states

Live Mint  

New Delhi: States may find it easier to get 50-year interest-free loans for capital expenditure from the Centre in the last quarter of the current fiscal year. “The idea is to fast-track the disbursement of interest-free capex loans during the last quarter of the fiscal to encourage states to spend more on capital expenditure," the first person mentioned above said. …

States push for more fiscal room, seek expansionary Union budget
3 weeks, 4 days ago

States push for more fiscal room, seek expansionary Union budget

Live Mint  

State governments on Friday sought extra headroom for their borrowings and greater fiscal support for their capital expenditure from the Centre, while advocating an expansionary union budget for FY26 to arrest an economic slowdown and a weakening currency. Ministers from 28 states, including some of the chief ministers and deputy chief ministers, attended Union finance minister Nirmala Sitharaman’s budget consultations …

Centre to make highest-ever effective capital expenditure in fiscal year 2024-25, know what it is
4 weeks ago

Centre to make highest-ever effective capital expenditure in fiscal year 2024-25, know what it is

India TV News  

The Central government is set to make the highest-ever effective capital expenditure in the fiscal year 2024-25, Union Finance Minister Nirmala Sitharaman said during the proceedings in Lok Sabha. Sitharaman on Tuesday stated that the effective capital expenditure of the Union govt for this fiscal year is pegged at a staggering Rs 15.02 lakh crore, among the highest such spending …

Industry needs to up R&D spend, expect govt capex growth to sustain: Ficci
1 month ago

Industry needs to up R&D spend, expect govt capex growth to sustain: Ficci

Live Mint  

New Delhi: Businesses need to step up their research and development spending, and the industry expects the government to sustain the growth in budget allocation for capital expenditure as these two would help the Indian industry to become more competitive in global markets, Harsha Vardhan Agarwal, president of Federation of Indian Chambers of Commerce and Industry, and vice-chairman and managing …

Capex support will continue for infrastructure development: Minister Chaudhary
1 month ago

Capex support will continue for infrastructure development: Minister Chaudhary

Live Mint  

India's capital expenditure on infrastructure projects such as roads, railways, ports, airports, and telecommunications has been rising steadily over the years, and the government stands ready to make adequate funds available in next year's budget as well to maintain the sector's growth momentum, minister of state for finance Pankaj Chaudhary said on Friday. India aims to become a developed nation …

‘Centre, state CPSE capex could decline in FY25’
1 month ago

‘Centre, state CPSE capex could decline in FY25’

Live Mint  

New Delhi: Capital expenditure by central infrastructure ministries, central public sector enterprises and state governments is expected to slow in FY25 after rising to a five-year high of 5.87% of GDP in FY24 due to reduced spending in the first two quarters, two people familiar with the matter said. "The Centre will continue its capital expenditure push in the upcoming …

Centre likely to miss ₹1.5 trillion capex loan target for states in FY25
1 month, 1 week ago

Centre likely to miss ₹1.5 trillion capex loan target for states in FY25

Live Mint  

The Centre is likely to fall short of fully utilizing the budgeted allocation for states under the ‘Special Assistance for Capital Investment’ scheme in 2024-25, as state spending took a hit during the general elections and a slowdown in economic growth, particularly in the first two quarters, two people aware of the matter told Mint. "While the capital expenditure at …

Centre releases ₹50,571 cr to states as capex loans during Apr-Nov: MoS finance
1 month, 1 week ago

Centre releases ₹50,571 cr to states as capex loans during Apr-Nov: MoS finance

Live Mint  

The Union government has released ₹50,571.42 crore to states as part of its ‘special assistance for capital investment’ scheme to be used for ramping up capital expenditure during the first eight months of the ongoing fiscal, according to the latest data from the finance ministry. Responding to a question from Member of Parliament Dilip Saikia in the Lok Sabha, Pankaj …

Capital spending of 13 major states to be below budget estimate in FY25 after sluggish start: Icra
2 months, 4 weeks ago

Capital spending of 13 major states to be below budget estimate in FY25 after sluggish start: Icra

Live Mint  

New Delhi: The combined capital spending of 13 major state governments in India is expected to grow by 13% to ₹6.5 trillion in FY25, below the budget estimate of ₹7.2 trillion, rating company Icra said on Wednesday. {{^adFree}} {{/adFree}} A sluggish start to capital expenditure and an expected shortfall in revenue due to elections during April-May are likely to have …

FM Nirmala Sitharaman on Budget 2024: Union Budget strikes a fine balance between growth, employment, capital investment, and fiscal consolidation
5 months, 2 weeks ago

FM Nirmala Sitharaman on Budget 2024: Union Budget strikes a fine balance between growth, employment, capital investment, and fiscal consolidation

The Hindu  

Replying to the debate on the Union Budget in Rajya Sabha on Wednesday where more than 80 elders participated, Union Finance Minister Nirmala Sitharaman said the transfer of resources to the States is going unhindered and the inferences that she mentioned just two States in the budget was a propaganda created by the INDIA bloc to mislead the people. Countering …

India confident of achieving fiscal deficit target, on course with glide path: FM Sitharaman
5 months, 2 weeks ago

India confident of achieving fiscal deficit target, on course with glide path: FM Sitharaman

Live Mint  

The government is confident of achieving its fiscal deficit target and sticking to the glide path to trim it to 4.5% of the GDP by FY26, Union finance minister Nirmala Sitharaman told Parliament on Tuesday, addressing concerns raised by the Opposition on the budget. Sitharaman also outlined the government’s budgetary allocations for social sector welfare schemes, public capex, expenditure on …

What’s the Budget push for infrastructure?
5 months, 2 weeks ago

What’s the Budget push for infrastructure?

The Hindu  

The story so far: In her Budget proposals for 2024-25, Finance Minister Nirmala Sitharaman has set aside ₹11 lakh crore for capital expenditure, comprising 3.4% of the GDP. With the aim to push States to spend on infrastructure, she said ₹1.5 lakh crore was being made available to them in the form of long-term interest free loans. Under the Sagarmala …

Nearly 85% of capital expenditure loans to states released in FY24: Finance ministry
5 months, 2 weeks ago

Nearly 85% of capital expenditure loans to states released in FY24: Finance ministry

Live Mint  

New Delhi: The Union government released about ₹1.10 trillion of the ₹1.3 trillion allocated to states in 2023-24 as interest-free loans towards developing infrastructure and specific reforms, with Uttar Pradesh, Madhya Pradesh, and Bihar cornering a large portion of the funds. Uttar Pradesh received the most funds, ₹19,215.08 crore, while Madhya Pradesh secured ₹12,636.21 crore, Bihar ₹8,814.80 crore, Rajasthan ₹8,513.42 …

The budget echoes the Developed India vision
5 months, 3 weeks ago

The budget echoes the Developed India vision

Hindustan Times  

Finance minister Nirmala Sitharaman has meticulously assessed India’s economic vitality. New Delhi, India - July 23, 2024: Union Finance Minister Nirmala Sitharaman during Post Budget Press Conference at National Media Centre, in New Delhi, India, on Tuesday, July 23, 2024. Budget 2024 unveiled a comprehensive strategy built on nine foundational pillars — agriculture, employment, inclusive development, manufacturing and services, urban …

Budget 2024-25 CAPEX: ₹11 lakh crore allocated towards capital expenditure, 3.4% of GDP by FM Nirmala Sitharaman
5 months, 3 weeks ago

Budget 2024-25 CAPEX: ₹11 lakh crore allocated towards capital expenditure, 3.4% of GDP by FM Nirmala Sitharaman

The Hindu  

In her seventh budget presentation, Finance Minister Nirmala Sitharaman announced allocating Rs 11 lakh, 11 thousand and 111 crore towards capital expenditure. She further urged, “We will encourage states to provide support of similar scale for infrastructure development based on their priorities.” The finance minister stated that private investment in infrastructure will be promoted through Viability Gap Funding and a …

States raise issue of borrowing limit in pre-budget meeting
6 months, 3 weeks ago

States raise issue of borrowing limit in pre-budget meeting

New Indian Express  

NEW DELHI: Opposition-ruled states such as Tamil Nadu and Kerala have again raised the issue of borrowing limits imposed by the Centre depriving them of necessary funds leading to liquidity crunch. In a pre-budget consultation with the Centre here, Kerala finance minister K N Balgopalan requested that a special package of at least Rs 24,000 crore be announced in the …

Interim budget 2024-25: Capex raised to 3.4% of GDP despite fiscal consolidation
11 months, 1 week ago

Interim budget 2024-25: Capex raised to 3.4% of GDP despite fiscal consolidation

Hindustan Times  

The central government’s capital spending in 2024-25, according to the interim budget will be ₹11,11,111 crore, a number which is more like an auspicious figure than a hard-headed budgetary allocation. Read here: Interim budget 2024-25: Govt stays the course on fiscal consolidation path Fiscal numbers of the second Narendra Modi government speak for themselves. The share of capital spending in …

Uttar Pradesh to benefit most from interim budget, says state’s finance minister Suresh Khanna
11 months, 1 week ago

Uttar Pradesh to benefit most from interim budget, says state’s finance minister Suresh Khanna

Hindustan Times  

Uttar Pradesh is likely to get ₹2,18,816.84 crore as its share in central taxes in the financial year 2024-25, the state’s minister for finance Suresh Khanna said here after Union finance minister Nirmala Sitharaman presented the interim budget in Parliament on Thursday. Suresh Khanna said Uttar Pradesh will benefit the most from the interim budget as the state will have …

Key takeaways from interim Budget 2024-25 in charts
11 months, 1 week ago

Key takeaways from interim Budget 2024-25 in charts

The Hindu  

The Finance Minister presented her sixth budget today. Budget 2024 live updates Besides this, here are the charts that show key numbers from the interim Budget 2024: Budget at a glance The Finance Minister said that the Revised Estimate of the total receipts other than borrowings is Rs 27.56 lakh crore. Capital Expenditure Capital expenditure outlay was raised to ₹11.1 …

UP surpasses capex target, set to get 2nd tranche of central loan
1 year, 3 months ago

UP surpasses capex target, set to get 2nd tranche of central loan

Hindustan Times  

LUCKNOW Uttar Pradesh government has spent 51% of the capital expenditure target against the required 45% to get the second instalment of an interest-free loan for 50 years from the Centre under its special assistance scheme for the states. The government proposes to spend all the funds earmarked for capital expenditure by the end of 2023-2024, and this is bound …

Focusing on roadmap to make India a $5 trillion economy: Govt
1 year, 5 months ago

Focusing on roadmap to make India a $5 trillion economy: Govt

Live Mint  

New Delhi: The government’s roadmap to makinge India a $5 trillion economy comprises measures like focussing on inclusive growth, promoting digital economy, fintech, technology-enabled development, energy transition and climate action, and relying on a virtuous cycle of investment and growth, minister of state for fnance Pankaj Chaudhary said on Tuesday. Responding to an unstarred question in the Rajya Sabha, Chaudhary …

Budget's Focus On Capex To Crowd-In Private Investment, Push Growth To 7 Per Cent: RBI Bulletin
1 year, 10 months ago

Budget's Focus On Capex To Crowd-In Private Investment, Push Growth To 7 Per Cent: RBI Bulletin

ABP News  

The Union Budget's focus on capital expenditure is expected to crowd-in private investment and push the GDP growth rate close to 7 per cent in the next financial year beginning April 1, said a Reserve Bank article on 'State of the Economy'. "In our view, the instrument of decoupling will be the Union Budget by raising India's growth prospects over …

Key takeaways from Union Budget 2023-24 in charts
1 year, 11 months ago

Key takeaways from Union Budget 2023-24 in charts

The Hindu  

The government will focus on economic growth and job creation and cut down the fiscal deficit, Union Finance Minister Nirmala Sitharaman said on Wednesday, presenting its last full budget in Parliament before the 2024 election. Transfer to states/UTs Allocation to Ministries The Union Budget allocated a massive ₹5.94 lakh crore for the Defence Ministry, a 13% increase year-on-year from last …

Tax-Capex double engine in Union Budget 2023-24
1 year, 11 months ago

Tax-Capex double engine in Union Budget 2023-24

Hindustan Times  

Finance minister Nirmala Sitharaman on Wednesday presented a Budget that continued her government’s emphasis on capital investment, with a record ₹10 lakh crore spend planned in 2023-24, sought to encourage taxpayers to spend more with tax cuts, and announced a ₹35,000 crore expenditure on energy transition even as she managed to reduce the fiscal deficit to 5.9% from 6.4% this …

Budget 2023: Key takeaways from Nirmala Sitharaman's announcements
1 year, 11 months ago

Budget 2023: Key takeaways from Nirmala Sitharaman's announcements

Hindustan Times  

The Narendra Modi government at the Centre will focus on economic growth and job creation and cut down the fiscal deficit, Union finance minister Nirmala Sitharaman said on Wednesday, presenting its last full budget in Parliament before the 2024 election. She also said the enhanced capex of ₹10 lakh crore for infrastructure development is at 3.3 per cent of the …

Budget 2023: ‘50-year interest-free loans for states to continue…’, says FM
1 year, 11 months ago

Budget 2023: ‘50-year interest-free loans for states to continue…’, says FM

Hindustan Times  

Finance Minister Nirmala Sitharaman on Wednesday announced that the Centre will continue 50-year interest-free loans to state governments for one more year. Budget 2023: ‘50-year interest-free loans for states to continue…’, says FM Check budget live updates here Presenting the Budget for 2023-24, she said the newly established infrastructure finance secretariat will assist in attracting more private investment. On October …

Budget 2023 | Government to continue 50-year interest-free loans to States for another year: FM Nirmala Sitharaman
1 year, 11 months ago

Budget 2023 | Government to continue 50-year interest-free loans to States for another year: FM Nirmala Sitharaman

The Hindu  

Finance Minister Nirmala Sitharaman on February 1 announced that the Centre will continue 50-year interest-free loans to State governments for one more year. Budget 2023 | Record allocation of ₹2.4 lakh crore for Railways On October 13 last year, Prime Minister Narendra Modi had launched the Gati Shakti - National Master Plan, aimed at developing integrated infrastructure to reduce logistics …

Reading the Union Budget with state govt spending statistics
1 year, 11 months ago

Reading the Union Budget with state govt spending statistics

Hindustan Times  

Finance minister Nirmala Sitharaman will present her fifth consecutive budget on February 1 this year. See Chart 1: Share of central and state spending in total government expenditure in India There was no significant increase in states’ fiscal deficit post-pandemic The union government’s fiscal deficit has seen a sharp increase in the wake of the pandemic. See Chart 2: centre …

States may undershoot planned borrowings for Jan.-March: analysts
2 years ago

States may undershoot planned borrowings for Jan.-March: analysts

The Hindu  

States may not borrow as much as the record $41 billion they plan to in the January-March quarter, which will help keep the spread between State and central government bond yields in check, analysts said. States plan to sell bonds worth ₹3.41 trillion, the highest quarterly borrowing ever scheduled, in the last three months of the financial year, according to …

Read the fine print on govt's big capital expenditure
2 years, 2 months ago

Read the fine print on govt's big capital expenditure

Live Mint  

As the economy struggled to find its feet following the pandemic-led disruptions, the Centre announced record capital expenditure to offer much-needed support. However, the basic expectation—that public capex would set the wheels of the economy running, and private companies would join in—hasn’t quite materialized. While the Centre has spent 46% of its capex plan in the six months till September, …

Only a handful of large firms ready for big spending
2 years, 2 months ago

Only a handful of large firms ready for big spending

Live Mint  

MUMBAI : Finance minister Nirmala Sitharaman’s expectation that private sector capital spending will power India’s economic growth appears to be wishful thinking as most companies, barring a handful of large conglomerates and state-run corporations, remain wary of new investments amid rising interest rates. Bankers said that the private capex cycle is quite uneven as large spending is mainly restricted to …

The states must get their fiscal act together
2 years, 4 months ago

The states must get their fiscal act together

Live Mint  

Central bankers driving the current round of monetary tightening in the world are looking askance at fiscal laxity, which could grow the inflation disease even as monetary medicine is being applied. The Centre’s budgeted fiscal deficit for 2022-23 at ₹16.6 trillion, was 6.4 % of gross domestic product as then projected, but 6.2 % of the likely GDP for 2022-23 …

Why it’s time to worry about state finances
2 years, 6 months ago

Why it’s time to worry about state finances

Live Mint  

State governments are confronting various fiscal risks, particularly heavy debt, says the Reserve Bank of India’s latest bulletin. However, a rising trend in providing freebies such as free power, water, and gender-based free bus rides in many states have eaten into the expenditure pie. Power sector accounts for a large portion of states’ financial burden, since dues owed by discoms …

Capex hike to social sector cuts: The story of Budget 2022, in nine charts
2 years, 11 months ago

Capex hike to social sector cuts: The story of Budget 2022, in nine charts

Live Mint  

An aggressive focus on government spending led on the capital side was the big theme of Finance Minister Nirmala Sitharaman's second pandemic budget. We explore Budget 2022 in nine charts: Dissecting the capex For an economy emerging out of a pandemic, Finance Minister Nirmala Sitharaman was expected to ramp up the capital expenditure markedly. Welfare cuts Unlike last year, Sitharaman …

Budget focused on poll-bound States: Gehlot
3 years, 11 months ago

Budget focused on poll-bound States: Gehlot

The Hindu  

Rajasthan Chief Minister Ashok Gehlot on Monday said the Union Budget, which was focused on five election-bound States, did not contain any concrete measures to address the issue of unemployment caused by the COVID-19 pandemic. It seems to be more a five electoral States’ budget rather than the Union Budget,” Mr. Gehlot said. Referring to the financial crisis faced by …

Budget 2020: Centre laid foundation for $5 trillion economy by 2024-25, focussed on increasing consumption, says Nirmala Sitharaman
4 years, 11 months ago

Budget 2020: Centre laid foundation for $5 trillion economy by 2024-25, focussed on increasing consumption, says Nirmala Sitharaman

Firstpost  

Nirmala Sitharaman also pitched for rationalisation of GST rates once a year and not every three months as was the trend so far. Kolkata: Union Finance Minister Nirmala Sitharaman on Sunday said the Centre, in the Budget, has laid the foundation of increasing consumption while ensuring that the government’s investment is deployed to build infrastructure leading to a $ 5 …

Budget 2019: Where India can find a cool $1 trillion
5 years, 6 months ago

Budget 2019: Where India can find a cool $1 trillion

Hindustan Times  

India will need $1 trillion of infrastructure investment to nudge annual GDP growth higher by just half a percentage point in Prime Minister Narendra Modi’s second five-year term. Annual federal deficits can’t go much higher than $100 billion; borrowing by the public sector is already cornering resources equal to 8% of the economy even as the household sector barely manages …

Budget 2019: Railways get ₹1.58 trillion
5 years, 11 months ago

Budget 2019: Railways get ₹1.58 trillion

Live Mint  

The Union budget has allocated a record of ₹1.58 trillion outlay for Indian Railways for the upcoming financial year 2019-2020 to expand the railway infrastructure in the country. Whether it is highways or railways or airways or even digi-ways, we have gone beyond incremental growth to attain transformative achievements.” Presenting the figures, Goyal said the capital support from the budget …

Opinion | Need to focus on state government finances
6 years, 4 months ago

Opinion | Need to focus on state government finances

Live Mint  

The widening of the fiscal deficit has re-emerged as a cause of concern for the Indian economy. As per a recent Reserve Bank of India report on state government finances, the consolidated fiscal deficit of the state governments in FY18 was 3.1%, against the budget estimate of 2.7%. While the state governments’ expenditure commitment has increased over time in line …

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