Reference News Network reported on January 9 that the Taiwanese media said that the Indian government may reduce its fiscal expenditure for the current year (end of March this year) to two trillion Indian rupees (1 yuan or about 10 rupees), which is equivalent to a 7% reduction in total planned expenditure The main reason is the severe shortage of taxes in recent years. Due to insufficient private investment, if the government cuts public expenditure, the economy will be worsened.
Taiwan's United Daily News reported on January 7 that, according to sources from the Indian government, although economic growth has continued to slow down, due to the reduction in tax revenue of about 2.5 trillion rupees, the government has kept the fiscal deficit within "acceptable limits" "And there are not many options to choose from.
According to reports, as of the end of November last year, Indian government expenditure has reached 65% of the total expenditure target of Rs 27.86 trillion; The monthly increase (3.1 trillion rupees) is half.
The source pointed out that the Indian government may control the fiscal deficit to GDP ratio of 3.8% this year, which is already higher than the original target of 3.3%. The government may announce an additional issue of government bonds of Rs 300 billion to Rs 500 crore this quarter in response to increasing pressure on the deficit.
The report said that analysts pointed out that insufficient domestic demand in India, coupled with weak corporate profit growth, has led to tax revenues falling far behind budget targets this year.
According to Nituso, chief economist of L & T Financial Services Company, based on the substantial slowdown of private investment, the government will further reduce spending targets, which will further drag down economic growth.
It is reported that although India cut interest rates by 135 basis points last year, the economic growth rate has declined for six consecutive quarters, only 4.5% from July to September last year. Although the RBI cut its estimated growth rate for this year to 5% at its meeting in December last year, it still kept interest rates unchanged, indicating that the RBI has become more worried about rising inflation than before. In addition, although the Indian Ministry of Finance announced that it would reduce corporate tax rates this year, it still failed to motivate companies to expand investment.
(Responsible editor: Ma Changyan)