In an indication that the Narendra Modi-government is unlikely to crank up spending to revive the economy, chief economic adviser (CEA) Krishnamurthy Subramanian has said that gross market borrowings of the Centre may even dip below the budgeted level of Rs 12.05 lakh crore this fiscal.
While the CEA made these comments in an interview to a TV channel, data released by the Controller-General of Accounts (CGA) on Wednesday showed the fiscal deficit at Rs 1.23 lakh crore or 8.2 per cent of the budget estimate at end-May against around 58.6 per cent a year ago.
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The central government on Wednesday also asked various ministries and departments to restrict expenses to a maximum of 20 per cent of their annual budgetary allocation in the September quarter. The restrictions for the second quarter would not be applicable for select ministries and departments, including health, agriculture, fertilisers, pharmaceuticals and food.
Worsening growth inflation dynamics to pose as a challenge for RBI: Economists freepressjournal.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freepressjournal.in Daily Mail and Mail on Sunday newspapers.
RBI Likely To Keep Policy Rates On Hold, Say Analysts RBI Likely To Keep Policy Rates On Hold, Say Analysts Retail inflation eased in November after holding above 7% for two straight months, but remained beyond the RBI s upper bound of the 2-6% target.
Updated: December 14, 2020 7:24 pm IST
Retail inflation eased in November after holding above 7 per cent for two straight months, but remained beyond the upper bound of the 2-6 per cent target, meaning the central bank is likely to leave policy rates on hold to support the economy, analysts said.
November s annual retail inflation was 6.93 per cent, lower than the 7.1 per cent forecast in a Reuters poll of economists and down from 7.61 per cent in October, government data showed on Monday.