Majority of economists and financial market observers expect Reserve Bank of India (RBI) to cut policy repo rate by 25 basis points on January 29 to 7.75 percent. The decline in inflation gauge based on wholesale price index (WPI) and the government's resolve to reduce fiscal deficit increased expectation that the central bank would redu
Tag: fiscal deficit
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Congress considers raising fuel prices
The ruling Congress Party at the centre is considering to raise the price of diesel and kerosene in order to reduce the government's fuel subsidy burden and thereby reduce its fiscal deficit. It may be noted that the Congress Core Committee, which has representatives of the party and the government, discussed the issue recently. Although no decision has yet been taken, the party is said to be evolving consensus on raising prices for the
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Finance ministry hopes to attain disinvestment target
The union finance ministry hopes to meet the target of raising Rs 30,000 crore through the disinvestment of the government stake in public sector undertakings in 2012-13. But some financial market observers feel that the market may not have the capacity to absorb the huge avalanche of shares in such a short span. They point out that divestment in shares of Oil and Natural Gas Corporation (ONGC) last March had no takers and
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Govt plans to reintroduce import duty on oil
Union government plans to reintroduce import duty on crude oil in the forthcoming union budget in order to increase its tax collection and thereby reduce fiscal deficit. However, the adverse impact of such a move would be that it would raise the price of oil and could leave the government with a higher subsidy bill if pump prices are not r
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Rangarajan expects inflation to ease to 6%
Prime MinisterĂâs Economic Advisory Council Chairman C Rangarajan expressed hope that inflation would ease to six per cent by the end of the next financial year. Although the increase in fuel prices and train fares could prevent headline inflation from moderating in the near term, in the long-run he expects inflation to trend down
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Ministry proposes gradual hike in diesel prices
In order to reduce the impact of fuel subsidy on government's fiscal deficit, the petroleum ministry proposed a gradual rise in diesel prices, by 1 per litre every month over a 10-month period. It is expected that the gradual rise may avoid controversy engendered by steep hikes in infrequent revisi
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Minister hopes to get revenue to control deficit
Speaking to reporters after a meeting of the Group of Ministers (GoM), Finance Minister P Chidambaram expressed hope of getting revenues from somewhere to control fiscal deficit within 5.3 percent of GDP. He remarked that there is still some time left in this financial year for carrying out disinvestment and auctioning of spectrum in the unbid
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Govt sticks to revised fiscal deficit target
Economic Affairs Secretary Arvind Mayaram informed that the government would not overshoot its revised fiscal deficit target of 5.3 percent in 2012-13. Earlier, Finance Minister P Chidambaram said this year fiscal deficit will be 5.3 per cent, instead of the budget estimate of 5.1 percent.