RBI Governor Shakikantha Das assured that the central government would control the revenue deficit at the rate of 9 percent of the country’s overall growth rate.
He said that the government is firm on budget management and financial responsibility (FRPM) and has achieved a goal that can be achieved.
Fiscal deficit target for the current financial year has been estimated at 9.5 percent. Earlier, it was fixed at 9.5 percent The deficit target for the current financial year (2021-22) has been set at 3.5 percent.
The government operates according to the criteria set by the Budget Management and Financial Accountability Committee. In addition, the fiscal deficit will be controlled by 1.5. He said the goal of raising funds for a little savings will be achieved next year.
The FRPM group, led by NK Singh, has set a target of limiting the fiscal deficit to 2.2 percent and 2.5 percent by 2021.
But the group also announced some exceptions. Accordingly, it is acceptable if the deficit target is not met due to national security, war situation, natural disaster and agriculture. Dakshinandan Das mentioned that the discount is about 8 percent a year.
He said the government will meet deficit targets next fiscal year. One should not doubt whether it can be achieved or not. Just 15 days after the budget was filed. Thus, it is unnecessary to start the fiscal year in April. He also pointed out that the government’s budget target for 2020 is not achievable.
He also noted that foreigners were able to invest in certain securities without any limit in the budget of 2021-27.
He also noted that the budget allowed firms to issue bonds of 5 percent to 5 percent interest. Thus, the opportunities for fundraising through foreign investment in India have been brighter. He also noted that there is already a way for companies to raise funds abroad through the ECB. He said that the RBI would not guarantee any problems in the process, including fundraising from abroad.
The second budget, presented by Union Finance Minister Nirmala Sitharaman, has the potential for short-term GDP growth. He said the budget aimed to boost private sector investment concessions, increase funding for foreign companies, increase financing for infrastructure projects and develop the manufacturing, electronics and textile industries.
Budget forecasts are also accepted by certified companies. The pitch rating estimates the company’s earnings to be 10 percent.
It also states that corporate tax reductions will reduce state tax revenues in the short term, but it will achieve better government equity goals in the long run.
In September last year, the government reduced the corporate tax rate from 30 percent to 22 percent. The move was taken by the government after the economic growth record dropped to the lowest in the July-September quarter of the last six years.
Peach also noted that the corporate tax cut, which was announced as a non-budget exemption, is extremely welcome.