GOVERNMENT CAPITAL EXPENDITURE
India's fiscal deficit on track, but spending challenges persist: UBI report
The central government fiscal deficit for the first seven months of FY25 stands at 46.5% of its budget estimates, highlighting challenges in meeting the year's capital expenditure target. Capital expenditure fell by 14.7% during this period, impacting long-term economic growth, although there was a fiscal improvement in October 2024.
Bangladesh estimates $16 billion siphoned yearly in Sheikh Hasina's 15-year rule
An average $16 billion was illicitly siphoned out of Bangladesh annually during former Prime Minister Sheikh Hasina¡¯s 15-year rule, according to a government committee's findings. Interim leader Muhammad Yunus received a white paper on the economy showing projects with inflated costs and corrupt activities. Former leaders from Hasina¡¯s party are either in jail, hiding, or have fled the country.
Central government capex to surge by 25 pc YoY in second half of FY25: Jefferies
The central government's capital expenditure is projected to increase by 25% YoY in the second half of FY25, focusing on infrastructure development over populist policies. Despite foreign investor outflows, strong domestic inflows and robust capex spending suggest a stable outlook for India's markets.
Fiscal deficit hits 46.5% of FY25BE
India's fiscal deficit for the first seven months of 2024-25 hit 46.5% of the annual target, slightly up from last year's 45%. Revenue expenditure increased, while tax revenue growth remained subdued. Although capital spending is expected to drop, experts believe the fiscal gap can still be contained within the 4.9% GDP target.
Fiscal deficit likely to be at 4.75 pc of GDP in FY25; govt capex to be lower by Rs 62k cr: IndRa
India Ratings projects India's FY25 fiscal deficit at 4.75% of GDP, slightly below the budget target. This is attributed to lower revenue expenditure and a decrease in capital expenditure, though capex remains at a two-decade high. Higher subsidy outgoes are expected, while tax revenues are projected to reach a 17-year high.
Indian economy to bounce back for 3 big factors: Here's what Morgan Stanley forecasts
India's economy is poised for a rebound, with projected GDP growth reaching 6.7% and 6.8% in the upcoming quarters of FY25. Increased government spending, moderating food inflation, and a recovering job market are key drivers of this anticipated growth, overcoming earlier challenges from weather disruptions and reduced consumer spending.
- Go To Page 1
L&T, J Kumar Infra, other infra stocks rally up to 16% as Maharashtra polls lift sentiment
Shares of J Kumar Infraprojects soared nearly 16% to Rs 795.25, while IRB Infrastructure Developers climbed 7.6% to a high of Rs 51.20. L&T also gained 4.2%, reaching an intraday high of Rs 3,757.70. Other infrastructure stocks, including Ceigall India, Ashoka Buildcon, Afcons Infrastructure, GPT Infraprojects, and KNR Constructions, rose between 2-7%.
India Inc's interest cover weakens with slipping top & bottom lines
Indian companies faced a decline in interest coverage ratio to 4.8% in the September quarter. This was due to rising interest costs and slower growth in operating profit. Interest costs surged by 7.2% year-on-year, while revenue growth slowed down to 4.9%. Higher working capital requirements and increased borrowings further impacted the ratio.
Growth likely to have slowed in Q2 but no significant downside risk to FY25 projections: DEA
India's economic growth may have slowed down recently. However, the economy is still projected to grow between 6.5% to 7% this fiscal year. Data on e-way bills and e-invoices support this projection. Food prices have been a concern, but inflation is not a major challenge. Government capital expenditure may be slightly lower than initially projected.
India's Q2 economic growth likely took a hit from heavy rains and corporate struggles: ICRA
India's economic growth is expected to moderate to 6.5% in the second quarter. This is due to heavy monsoon rains and weaker corporate margins. However, government capital expenditure and kharif sowing have shown positive growth. The industrial sector is likely to see the biggest slowdown. Services and agriculture sectors are expected to remain resilient.
Neelam Linens shares list at 67% premium over IPO price on NSE SME platform
Neelam Linens and Garments is set to debut on the NSE SME platform with an expected 54% premium over its issue price. The company, specializing in home furnishings and apparel, plans to use the IPO proceeds for capital expenditure, debt repayment, and general corporate purposes. The Indian textile industry's projected growth and government incentives position Neelam for potential success.
Rs 9.74 lakh crore debt borrowed by YSRCP govt identified so far: Andhra CM
Andhra Pradesh Chief Minister N Chandrababu Naidu revealed that a debt of Rs 9.74 lakh crore, accumulated during the previous YSRCP government's tenure, has been uncovered. This staggering sum encompasses state debt, public account liabilities, corporation debt, and significant outstanding dues to vendors and employees. Naidu expressed concern that further investigation might unearth even more debt.
Japan's economy slows in Q3 on tepid capex; consumption picks up
Japan's economy, despite slowing to a 0.9% annualized growth in the July-September quarter due to reduced capital spending, saw a boost in private consumption. This unexpected rise in consumption, exceeding market expectations, points towards a potential recovery driven by wage growth and increased consumer spending.
Modest recovery in central capex in Q2FY25, states and corporate capex continued to decline: CareEdge Ratings
India's capital expenditure saw a moderate resurgence in the second quarter, fueled by increased central government spending, despite a decline in state-level investments. While corporate capital expenditure dipped slightly, promising order books in capital goods and infrastructure signal potential growth.
Go splurge! India may lift spending limits to hit record capex goals
To avoid missing its capital expenditure target for the fiscal year 2024/2025, India is considering easing quarterly spending restrictions. The move comes after slower spending in the first half of the year contributed to a slowdown in economic indicators. Despite the potential increase in spending, the government is unlikely to adjust its borrowing plans for the year.
'Govt FY25 spends to be in sync with Budget estimates of ?48.2 lakh cr'
India's government spending for the current fiscal year is expected to stay around the budgeted amount, despite upcoming requests for additional funds. The focus remains on meeting the fiscal deficit target by managing spending and boosting capital investments, which have lagged in the first half of the year.
Andhra Pradesh govt presents Rs 2.94 lakh cr budget for FY25
Andhra Pradesh's new NDA government presented a Rs 2.94 lakh crore budget for 2024-25, focusing on reviving the state's finances. Key allocations target poverty eradication, infrastructure development, and improved healthcare and education. The opposition boycotted the session.
Amnesty Scheme for Customs, easier tax compliance on India Inc's Budget wishlist
Indian industry bodies have submitted their wishlist for the upcoming budget, calling for an amnesty scheme for customs, tax cuts for individuals and LLPs, and streamlined tax compliance processes. They also urged the government to expedite faceless appeals, establish a dedicated dispute resolution system, and boost infrastructure spending.
How about government giving 'consumption vouchers' to boost Indian economy?
CII proposes consumption vouchers for low-income citizens to boost demand. The vouchers can be used for specific goods and services. CII also recommends a 40% hike in MGNREGA wages and a 33% increase for PM-KISAN beneficiaries. Tax reforms and increased capex are also part of the suggestions. CII suggests a three-slab GST structure and faster dispute resolution.
7 factors contributing to India's capex cycle revival
For most of the past decade, India's capex growth remained subdued. From 2013 to 2018, capex growth averaged around 3-4%, with infrastructure and manufacturing facing underinvestment. This slowdown was primarily due to policy uncertainties, weak demand, high corporate debt, and challenges in land acquisition and project approvals.
'Assam's debt rose to Rs 1.52 L cr under CM Himanta': Congress demands white paper on fiscal situation
Congress has called for a white paper from Assam CM Himanta Biswa Sarma, accusing his government of raising the state's debt to Rs 1,52,000 crore by 2024, a significant rise in financial liabilities, and mismanaging funds, leading to delayed contractor and salary payments.
RBI: Looking through the liquidity management tea leaves
The RBI's October policy shift to a neutral stance was reflected in its liquidity management since July 2024, with interbank liquidity surplus averaging INR1.2tn. RBI refrained from strong liquidity absorption, signaling comfort with current conditions as government expenditure rose and inflation pressures moderated.
India Inc credit profiles benefit on high growth in H1, set to improve further
High economic growth improved India Inc's credit profiles in the first half of FY25. Crisil Ratings reported an improved credit ratio, largely driven by government infrastructure investment and private consumption. Private sector capital expenditure is set to rise, with significant contributions from sectors like oil and gas, steel, and cement. Icra and Careedge also reported similar credit trends.
Deposit rates may stay elevated despite slower credit growth
Deposit growth is currently outpacing credit expansion. Although a policy rate cut is expected in the second half of the fiscal year, bank deposit rates are likely to stay high for now. This is due to the slow pace of deposit mobilisation and the need for capital to fund private capital expenditure, which is on the rise.
IPF sees Rs 3,000 crore capex in Bengal, plans new poly parks and sector skill centre
The Indian Plastics Federation (IPF) plans two new poly parks in West Bengal to meet rising demand, alongside launching a sector skill centre at Sankrail, pending NSDC approval. The initiative, with Rs 3,000 crore capex, aims to generate 2 lakh jobs and contribute significantly to the state's GDP.
SBI aims to become first financial firm to cross milestone of Rs 1 lakh crore profit: Chairman
State Bank of India aims to become the first Indian financial firm to achieve a net profit of Rs 1 lakh crore in the next 3-5 years. The bank recorded a standalone net profit of Rs 61,077 crore in FY24. SBI has a strong credit pipeline and expects private sector capital expenditure to increase in the second half of the fiscal year.
Finmin relaxes norms for expenditure exceeding Rs 500 cr to give boost to capex
The finance ministry has eased norms for expenditures over Rs 500 crore to boost capital expenditure, set at Rs 11.11 lakh crore for this fiscal year. This aims to enhance government spending, which slowed due to elections. The relaxation is subject to strict compliance with guidelines and plans by ministries.
Despite increased Capex, Government on the path of fiscal prudence says Anand Rathi
The central government is continuously moving on the path of fiscal prudence with the fiscal deficit of the government on July 24 declining to Rs 1.41 lakh crore as compared to Rs 1.54 lakh crore in the corresponding period last year, as per a report by Anand Rathi, a financial services company.
India's fiscal deficit at 17.2% of FY25 target as of July
India's fiscal deficit in the first four months of FY25 reached 17.2% of the annual target, a decrease from 33.9% a year earlier. The government recorded net tax receipts of 7.15 trillion rupees and expenditure of 13 trillion rupees, while capital expenditure stood at 2.61 trillion rupees.
Load More
