Fiscal Deficit Current Affairs - 2020

GoI releases Rs 6,195 crores of funds to 14 states

On May 11, 2020, the Government of India released Rs 6,195 crores to 14 states. This is the second equated monthly installment of Post Devolution Revenue Deficit. Highlights The grant allocated to the states will act as additional source of income to the states. The grant was recommended by the 15th Finance Commission. The Central Read More…

Finance Commission: States shall use FRBM clause to fight COVID-19

On April 24, 2020, the Finance Commission has advised the state governments to use the clauses of FRBM (Fiscal Responsibility) act in order to raise additional resources to fight against COVID-19. Centre and State FRBM The states have their own FRBM act. The main similarities between the centre and state FRBM is that the limit Read More…

Finanance Commission: N K Singh Committee for a new Fiscal Consolidation Road Map

On March 19, 2020, the Finance Commission Constituted a committee under Shri N K Singh in order to build a fiscal consolidation road map for the centre and the states. Highlights The Finance Commission had submitted its first report to the GoI in February 2020. The Commission will submit its final report covering the financial Read More…

Budget Allocation to fight Corona: Odisha, Tamil Nadu allocated funds

The US Government recently allocated 100 billion USD to fight Corona Virus. Following the US, UK had announced 400 billion USD to be allocated for Corona Virus. Ranked the fifth largest economy in the world with a GDP of 2.94 trillion USD, overtaking UK, India is yet to allocate funds for Corona Virus. However, the Read More…

Corona Virus: GoI halts three crucial policies as revenues shrink

As the outbreak of corona virus has hit revenue collection, the Government of India has dropped three crucial policies. Highlights The revenue collection for the fiscal year 2019-20 has contracted by 3.5% in the first 11 months. With the increasing threat of Corona Virus, it is expected that the revenue collection is to get reduced Read More…