Latest news with #FiscalResponsibilityandBudgetManagement
Time of India
3 days ago
- Business
- Time of India
Centre okays T to reschedule Rs 25k cr high interest loans
Hyderabad: In a significant financial relief for Telangana, the Centre has reportedly agreed to restructure high interest loans taken by the state over the past decade. Sources said the Reserve Bank of India has approved the repayment of nearly Rs 25,000 crore in fresh borrowings over the next two years — at lower interest rates and with longer repayment periods. The move is expected to save Telangana around Rs 2,000 crore annually, compared to the burden under previous terms. On Aug 5, the RBI disbursed Rs 5,000 crore, which the state govt immediately used to clear old, high interest loans availed from the Rural Electrification Corporation (REC). You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad The state had long raised concerns over loans contracted at steep interest rates from private financial entities, often routed through various government-owned corporations. These borrowings, scheduled for repayment over 10 years, placed a heavy fiscal load on the state exchequer due to their high servicing costs. In contrast, RBI loans come with lower interest rates (7% to 7.5%) and longer tenures of 25 to 30 years, offering significant relief. By comparison, loans from the REC carried an 11% interest rate and a 10-year repayment term, which became increasingly unsustainable. Chief minister A Revanth Reddy had repeatedly urged the Centre to allow rescheduling of such liabilities. Following a detailed review of Telangana's fiscal health, the Union finance ministry agreed to the proposal. In a parallel development, the Centre had earlier brought all off-budget borrowings under the Fiscal Responsibility and Budget Management (FRBM) framework, which reduced Telangana's eligibility to raise funds from the RBI during 2020–21. After these corporate loans were clubbed under FRBM, the state govt intensified its push for rescheduling, which was now accepted by the Centre. The state has raised funds through monthly bond issuances. With the RBI's green light, it can now rework the Rs 25,000 crore loan burden over two years. Funds raised from bond issues, such as the Rs 5,000 crore obtained recently, will be used solely to retire high-interest loans, not for new programmes or expenditure. Financial analysts said this restructuring will ease fiscal pressure and save nearly Rs 2,000 crore per year, giving the state room to stabilise its economy. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
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Business Standard
4 days ago
- Business
- Business Standard
World is witnessing trade policy dislocation, says finance ministry
The finance ministry on Wednesday said the world has witnessed 'trade policy dislocation' as well as 'escalating conflicts' across West Asia since the presentation of Union Budget 2025-26 (FY26) in February. The ministry cited the presence of these risks to the world economy for its inability to present a Medium Term Expenditure Framework (MTEF) 2025 under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. '…The required projections cannot be made with any degree of certainty,' it noted in a statement on half yearly review of the trends in receipts and expenditure in relation to the budget at the end of the financial year 2024-25, tabled in Parliament. 'The Government while presenting the Union Budget for FY 2025-26 had informed Parliament through the Medium-Term Fiscal Policy Statement (MTFPS) and the Fiscal Policy Strategy Statement (FPSS) that rolling targets for FY 2026-27 and FY 2027-28 could not be provided mainly on account of continuing global uncertainty and visible benefits of retaining flexibility in conducting fiscal policy operations,' the statement noted. 'To prepare the MTEF Statement, certain assumptions are made regarding the growth rate of the economy, buoyancy of various taxes, trajectory of non-tax receipts of the Government, etc. These variables are then used to estimate the overall resource position of the Government which in turn is used to make meaningful expenditure projections and rolling targets for the upcoming fiscal years,' it pointed out. However, the finance ministry said the government remains committed to achieving the glide path of fiscal consolidation. 'Since FY 2021-22, adoption of an operationally flexible fiscal consolidation path has served the country well. India is now set to attain the goal outlined in the Budget for FY 2021-22 and reach fiscal deficit level below 4.5 per cent of GDP in FY 2025-26,' it said. The FY26 Budget has laid down a path for fiscal consolidation for FY 2026-27 to 2030-31. 'Sans any major macro-economic disruptive exogenous shock(s), and while keeping in mind potential growth trends and emergent development needs, the Government would endeavour to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31) such that the Central Government debt is on declining path to attain a debt to GDP level of about 50±1 per cent by 31st March 2031 (the last year of the 16th Finance Commission cycle),' the finance ministry said in the statement.
Time of India
25-07-2025
- Business
- Time of India
In Delhi, Fadnavis Pitches ₹10,000 Crore Fertiliser Plant for Vidarbha
Nagpur: Maharashtra chief minister Devendra Fadnavis has proposed a ₹10,000 crore fertiliser plant in Nagpur district, positioning it as a game-changing investment to revive Vidarbha's agrarian economy. The proposed project, a joint venture between GAIL, the department of fertilizers, and the state government, will have an annual production capacity of 12.7 lakh tonnes. During a meeting with Union health minister JP Nadda in Delhi, Fadnavis—who is on a two-day visit to the national capital—requested central subsidy and policy clearance. "This will be a transformative project for Vidarbha," the CM said, highlighting its dual impact on rural employment and fertiliser availability. Nadda responded by instructing the state to submit a cabinet proposal. Fertilizers secretary Ratak Kumar Mishra was also present at the meeting. Fadnavis' visit included a series of high-level meetings to accelerate approvals for major infrastructure and environmental projects. In a meeting with finance minister Nirmala Sitharaman, he sought clearance from the ministry of economic affairs for five international funding proposals. These included ₹8,651 crore from the Asian Development Bank to connect villages with concrete roads, ₹4,326 crore for coastal protection, and another ₹4,326 crore to treat municipal wastewater for industrial reuse. Two additional proposals, routed through the World Bank, were also discussed. Sitharaman, acknowledging Maharashtra's financial discipline, assured full cooperation. "Maharashtra has maintained strong economic indicators on every front," she said. Finance secretary Anuradha Thakur, chief economic advisor to the CM Praveen Pardeshi, and principal secretary Ashwini Bhide attended the meeting. Fadnavis also pushed for a ₹22,490 crore rural road network project covering 14,000 km under the ministry of rural development. These 25-year maintenance-free roads, supported by ADB funding, are expected to ease transportation for farmers. Union agriculture minister Shivraj Singh Chouhan praised the plan and lauded the state's performance in housing schemes. "The central govt has sanctioned a record 30 lakh homes for the state," he noted. At NITI Aayog, Fadnavis discussed projects worth ₹4,326 crore each, including the use of artificial intelligence for non-communicable disease (NCD) screening and bamboo-based industrial clusters. He also presented progress updates on the ₹8,651 crore Marathwada Water Grid, the Damanganga-Godavari river-link project, and a skill development plan linking ITIs with private industry. The commission assured timely clearances. "Despite the Fiscal Responsibility and Budget Management (FRBM) limit of 25%, Maharashtra has stayed within 18%," said CEO BVR Subrahmanyam, commending the state's fiscal prudence.
The Hindu
25-07-2025
- Business
- The Hindu
CM Fadnavis meets Union Ministers in Delhi, seeks financial assistance for projects
Chief Minister Devendra Fadnavis held a series of meetings with several top leaders in Delhi over the last two days to discuss and secure financial assistance for the implementation of various development projects in Maharashtra. During his two-day tour to Delhi, he met Union Home Minister Amit Shah, Union Health Minister and BJP National President J.P. Nadda, Union Defence Minister Rajnath Singh, Union Finance Minister Nirmala Sitharaman, Union Agriculture Minister Shivraj Singh Chauhan, and NITI Aayog officials. The meeting with BJP leader Mr. Shah at Parliament House lasted for about 25 minutes. According to the CMO, the projects and issues concerning Maharashtra were discussed. Mr. Fadnavis, also the State Home Minister, sought approvals and assistance for three projects from global financial institutions during the meeting with Nirmala Sitharaman. These projects include financial assistance of $1 billion (₹8651 crore) from the Asian Development Bank for the concretization of roads in rural Maharashtra, the second project— resolving rising sea levels in Maharashtra through natural means requires assistance of $500 million (₹4326 crore), and assistance of $500 million from the World Bank for reuse of sewage for industrial purpose. According to the CMO, Ms. Sitharaman gave instructions to the Finance Ministry to approve all three projects. During the meeting with J.P. Nadda, Mr. Fadnavis proposed the set-up of a 12.7 lakh tonne fertiliser project in Nagpur district, a joint venture between GAIL, the Fertiliser Department and the Maharashtra government. The State government has asked for a subsidy for a project worth ₹10,000 crore. Mr. Fadnavis also submitted a proposal worth $2.6 billion (₹22,490 crore) to the Union Ministry of Rural Development to build 14,000 km of roads in Maharashtra. Shivraj Singh Chouhan called the project 'ambitious' for farmers, providing 'good connectivity'. Meanwhile, with NITI Aayog CEO BVR Subramanian, Mr. Fadnavis discussed projects, including Artificial Intelligence for NCD (Non-Communicable Disease) screening, the bamboo-based cluster (both projects worth $500 million each), Marathwada Water Grid and Damanganga-Godavari river interlinking project, and other water conservation projects worth $1 billion. NITI Aayog officials praised Maharashtra for maintaining the Fiscal Responsibility and Budget Management (FRBM) limit at 18% against the limit of 25%
Mint
25-07-2025
- Business
- Mint
The week in charts: GDP projections, Centre's financial discrepancy
Amid global uncertainty and weak domestic demand, agencies are downgrading India's gross domestic product (GDP) growth for 2025-26. Meanwhile, a report by the Comptroller and Auditor General (CAG) has found discrepancies in the Centre's financials, and Jagdeep Dhankhar resigned as vice president of India. Growth downgrade The Asian Development Bank (ADB) has released its latest estimates for India's GDP projection, lowering the growth forecast for 2025-26 to 6.5% from its earlier estimate of 6.7% given in April. The downward revision reflects the negative impact of US tariff policies and a weakened demand and investment climate. India Ratings and Research has lowered its projections even lower to 6.3%, cutting 30 basis points from an earlier estimate. With this, GDP growth is estimated to be 6.2-6.5% in 2025-26 by all major agencies. Export dependency India exported electronic goods worth $40.9 billion in 2024-25, but imported $102.6 billion, making it a net importer by a huge margin. AMintanalysis of trade data shows that electronics exports are highly concentrated, with the US accounting for 37.3% of total exports, dramatically up from about 14% in 2010-11. Other top destinations include the UAE, Netherlands, UK, and Italy, but their shares remain modest at 4.8-9% in 2024-25, showing little growth over the past 15 years despite India's export push. Fiscal conundrum ₹21.3 trillion: That is the unrealized tax revenue for 2022-23, marking an increase of ₹5.47 trillion from the previous year,Mintreported, quoting the latest CAG report presented in Parliament. The audit report highlights gaps in transparency and data consistency regarding compliance with the Fiscal Responsibility and Budget Management (FRBM) Act. The report noted that there was a discrepancy of ₹18,000 crore in the fiscal deficit figure between Union government finance accounts (UGFA) for 2022-23 and the budget at a glance (BAG) for 2024-25. Sudden resignation In the midst of the ongoing monsoon session, vice president Jagdeep Dhankhar tendered his resignation to the President, citing health reasons, cutting short his term scheduled to end in August 2027. He was the 14th sitting vice president of India and also served as the chairman of the upper house of Parliament. With the sudden resignation, Dhankhar has become one of three vice presidents to quit mid-term. With a tenure of two years and 344 days, his presidency is also the third shortest in the history of independent India. Investor sell-off After three months of fund inflow, foreign investors turned net sellers for most of July due to US-India trade tensions and mixed corporate financial results, PTI reported. According to the latest NSDL data, foreign portfolio investors (FPIs) pulled out ₹4,508 crore from equities this month (until 24 July). This follows net inflow of ₹14,590 crore in June, ₹19,860 crore in May, and ₹4,223 crore in April. Earlier, FPIs withdrew ₹3,973 crore in March, ₹34,574 crore in February, and ₹78,027 crore in January. Domestic driven ₹60,681 crore: That is the forex savings from nearly 8% year-on-year decline in coal imports during 2024-25, the coal ministry said this week. India imported 243.62 million tonnes of coal in 2024-25, down from 264.53 million tonnes in 2023-24, which resulted in a reduction in forex savings, coal and mines minister G. Kishan Reddy said. This decline in imports comes amid rising domestic coal production, which increased 5% to 1.05 billion tonnes in 2024-25. Cost advantage Indian companies overcame persistent weakness in demand as profits surged at the fastest pace in at least five quarters during the June quarter, driven by falling raw material costs, showed a Mint analysis. Among 182 companies that declared their first quarter results of 2025-26, aggregate revenue rose 5.4% year-on-year, but net profits jumped 23% as raw material costs declined 14% over the year—the steepest drop in eight quarters. Excluding BFSI companies, net profits soared nearly 40% from the previous year. Chart of the week: Digital revolution Mobile phones have emerged as the growing investment tool for retail investors, accounting for over a quarter of all monthly transactions since April 2024, according to BSE data. This represents a dramatic surge from just 5% in June 2019 and 10% in June 2020, with mobile trading peaking at nearly 29% in May 2025. Follow our data stories on the'In Charts" and'Plain Facts" pages on
