Latest news with #fiscaldeficit
Reuters
3 days ago
- Business
- Reuters
Indian government's FY25 fiscal deficit in line with projection
MUMBAI, May 30 (Reuters) - India's fiscal deficit (INFISC=ECI), opens new tab for 2024-25 was 4.8% of the gross domestic product (GDP), data released on Friday showed. The fiscal deficit was in line with the government's revised estimate. The Indian government aims to lower the fiscal deficit to 4.4% in the current fiscal year. India's fiscal year runs April through March. For the month of April, the fiscal deficit was 11.9% of the full-year budget estimate. ** Net tax receipts at 30.36 trillion rupees ($354.9 billion) compared with 23.27 trillion rupees in the previous year ** Non-tax revenue at 5.38 trillion rupees compared to 4.02 trillion rupees in the previous year ** Total government expenditure at 46.56 trillion rupees compared to 44.43 trillion rupees in the previous year ** Capital expenditure, or spending on building physical infrastructure, was 10.52 trillion rupees, against 9.49 trillion rupees in the previous year ($1 = 85.5370 Indian rupees)
Reuters
3 days ago
- Business
- Reuters
Indian FY25 fiscal deficit slightly above target
MUMBAI, May 30 (Reuters) - Fiscal deficit (INFISC=ECI), opens new tab for 2024-25 was 100.5% of the fiscal year target, data released on Friday showed. In February, the Indian government set the 2024-25 fiscal deficit target at 4.8% of gross domestic product and aimed to lower it to 4.4% in the current fiscal year. The government did not provide fiscal deficit data as a percentage of the GDP. India's fiscal year runs April through March.
Zawya
4 days ago
- Business
- Zawya
Kuwait's fiscal deficit to remain high until 2028 amid low oil prices
Kuwait's headline fiscal deficit is expected to remain high, averaging 8.9% of GDP between 2025 and 2028, compared with an estimated 2% in 2024, according to S&P Global Ratings. The widening deficit is due to low oil prices and high expenditure levels, primarily resulting from wages, subsidies, and grants, which collectively account for about 70% of total expenditure, said Juili Pargaonkar, an analyst at S&P. Brent oil prices are forecast to average $65 per barrel over the rest of 2025 and $70 per barrel over 2026-2028. 'We forecast the deficit will decline to about 6% of GDP by 2028 from about 14% in 2025, as we expect higher oil revenue due to modestly higher production over 2027-2028 and government efforts to increase non-oil revenue,'' Pargaonkar said. S&P believed that technical groundwork is underway for several fiscal reforms, including the imposition of corporate income tax and excise tax, subsidy rationalisation, and procurement optimisation. The government is looking to increase non-oil revenues through higher government fees and improved collection through digitalisation, she said. According to S&P, Kuwait's economic growth is expected to remain modest at 2% in 2025-2026 amid slow global growth. Ongoing reforms could improve longer-term growth prospects, Pargaonkar noted. She expected real GDP growth to moderately rebound to about 2.6% in 2027-2028, supported by an increase in oil production and its positive spillover on the non-oil economy. Additionally, the implementation of the financing and liquidity law in March 2025 will enable the government to issue debt in both domestic and external capital markets, which will help diversify its funding sources, she stated.
Asharq Al-Awsat
5 days ago
- Business
- Asharq Al-Awsat
S&P Global Affirms Kuwait's Rating at ‘A+' with Stable Outlook
S&P Global affirmed on Tuesday Kuwait's long-term credit rating at 'A+' with a stable outlook, forecasting the country's economy to grow 2% in 2025-2026. In its latest report, the US-based agency said that due low oil prices and large expenditure, Kuwait is forecast to run a high fiscal deficit in the upcoming two to three years. 'Amid less favorable economic conditions due to global trade tensions and weaker oil prices, Kuwait's large stock of external public-sector assets should provide a buffer for a policy maneuver, if needed,' said S&P Global. The report further noted that Kuwait's fiscal deficits will remain elevated, averaging around 8.9% of gross domestic product from 2025 to 2028, compared to 2% in 2024. 'Kuwait's fiscal deficits will remain elevated as subdued oil prices and high expenditure levels, particularly on wages and subsidies, continue to weigh on public finances,' S&P said. It also assumed Brent oil prices of $65 per barrel in 2025 and $70 per barrel beyond then. The agency said fiscal deficits are forecast at 6% of GDP on average by 2028 from around 14% in 2025 due to a modest increase in production during 2027-2028 and government efforts to increase non-oil revenues. 'S&P Global is recognizing that Kuwait is undergoing technical preparatory work for several fiscal reforms, including corporate income tax, production tax, subsidies rationalization, and improved government procurement,' it noted, adding that the government is seeking to increase non-oil revenues through raising taxes and improving revenue collection through digital transformation. The agency stressed that one key development is the recent passage of the Financing and Liquidity Law, which enables the government to tap capital markets for the first time since 2017. 'Our base case assumes that government capital expenditure and part of the fiscal deficit will be partially funded via debt issuance. We forecast issuance of about $10 billion in 2025 and about $5 billion of debt annually in 2026-2028,' the agency added. Meanwhile, S&P warned that potential indirect effects of low oil prices and global policy uncertainty could dampen growth in Kuwait. It said the US administration imposed a 10% tariff on Kuwaiti exports to the US, but imports of oil, gas, and refined products, which constitute the majority of Kuwait's exports, were exempt from the new measures. The agency stated that it expects Kuwait's economy to grow 2% in 2025-2026, compared to a 2.7% forecast, while rebounding to 2.6% in 2027-2028 as oil output rises.
Zawya
5 days ago
- Business
- Zawya
Oman maintains fiscal discipline in Q1 amidst lower oil revenue
MUSCAT: The Sultanate of Oman posted a fiscal deficit of RO 136 million in the first quarter of 2025, demonstrating continued government commitment to prudent financial management and strategic investments, even amidst a drop in hydrocarbon revenue and tightening global economic conditions. This is according to the Ministry of Finance's Fiscal Performance Bulletin for the January–March period. During the first quarter of 2025, total public revenue reached RO 2.635 billion. This represented a year-on-year decline of seven per cent compared to the RO 2.826 billion recorded in the same period of 2024. The decline was driven primarily by a reduction in oil and gas revenue. Net oil revenue stood at RO 1.468 billion, falling by 13 per cent from RO 1.688 billion a year earlier. Net gas revenue also declined marginally by two per cent to RO 436 million, down from RO 444 million. In contrast, current revenue increased by five per cent to RO 725 million, compared to RO 691 million in the same period last year. Despite revenue pressures, public spending rose to RO 2.771 billion, a four per cent increase compared to RO 2.664 billion in the first quarter of 2024. The increase is attributed to a strong rise in development expenditure, which grew by 27 per cent to RO 254 million. Meanwhile, current expenditure slightly decreased by one per cent to RO 1.967 billion. The government also allocated RO 490 million towards contributions and other expenses, including RO 144 million for the social protection system and RO 27 million in fuel subsidies. Additionally, RO 100 million was allocated to the budget line designated for future debt obligations. Spending on social sectors and basic services totalled RO 1.668 billion by the end of March 2025. This amount represented 40 per cent of total public spending. Of this allocation, 52 per cent was directed towards social welfare and security, twenty-five per cent towards education, sixteen per cent towards health services and seven per cent towards housing. The Ministry of Finance also maintained strong support for the private sector by paying more than RO 304 million to suppliers and contractors through the government's financial system. These payments were made within an average of five working days after the submission of complete documentation, reflecting the government's reliability and efficiency in fulfilling its financial obligations. Public debt declined to RO 14.3 billion at the end of the first quarter of 2025, compared to RO 15.1 billion in the same period of 2024. The Ministry attributed this reduction to the proactive repayment of outstanding financial obligations. To address financing needs for 2025, the government has announced a borrowing plan of RO 2.454 billion. This includes RO 1.836 billion to cover maturing debt instalments and RO 620 million to finance the anticipated fiscal deficit. The government aims to meet these requirements through a mix of Government Development Bonds and Local Sovereign Sukuk, with a total issuance value of RO 750 million planned across the year. This strategy is designed to ensure funding at sustainable cost and risk levels. The financing plan also supports three key objectives: enhancing the domestic debt market, diversifying investor participation and mitigating risks associated with public debt. According to the International Monetary Fund's April 2025 World Economic Outlook, global economic growth is projected to slow to 2.8 per cent in 2025. The global inflation rate is expected to ease to 4.2 per cent. Oil prices are forecast to average $66 per barrel in 2025, down from $73 per barrel during Oman's first quarter. Despite external headwinds, the Omani economy continued to expand. The gross domestic product at constant prices grew by 1.7 per cent in 2024, reaching RO 38.305 billion, up from RO 37.674 billion in 2023, according to the National Centre for Statistics and Information. Oman's first quarter fiscal performance reflects a government focused on stability, resilience and forward-looking reforms. With increased investments in development and social sectors, accelerated debt reduction and timely payments to the private sector, the government remains aligned with the goals of Oman Vision 2040. Despite global uncertainties, the Sultanate of Oman is maintaining a steady course towards sustainable growth and economic diversification. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
