MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Jan 19, 2000 - Government debt way past target levels
Government debt way past target levels
According to newspaper reports, the government of India is likely to surpass its borrowings target for FY00 by a wide margin. The Reserve Bank of India has announced an issue of Rs 30 bn government paper. With this, the government's gross borrowings will touch Rs 921.3 bn as against the targeted Rs 840.1 bn. The sharp rise in government borrowings is a direct fallout of the burgeoning fiscal deficit. Despite the economy gaining momentum (the GDP grew by 6% in 2QFY00), the government's revenue collections continue to be way below target. Then there is the expenditure on the Kargil conflict that further worsened the fiscal situation. Added to this is a failed attempt to raise Rs 100 bn by divesting the government's stake in various public sector units.
The government's persistent recourse to the debt markets to fund deficits could trigger off a hardening of interest rates as corporate and government compete to meet their funding requirements. This would not augur well for the economy, as higher rates would lead to slower growth in investment activity, which is a must for a sustained economic recovery.
The government has targeted a fiscal deficit of Rs 1,050 bn for the fiscal year 2000. However, this is likely to be exceeded by a wide margin. Consequently, it has been estimated that the government would exceed its borrowing target by approximately Rs 200 bn.
More Views on News
Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)
Mar 23, 2021Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...
My Latest Stock Recommendation (Fast Profits Daily)
Oct 9, 2020How I picked an exciting stock using trends from both the commodity and equity markets.
Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)
Jun 1, 2020Is too much data hurting your quest for market beating returns?
Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)
Apr 29, 2020Ajit Dayal on how the mutual fund industry robs you of your wealth.
This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)
Oct 16, 2019If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.
More Views on NewsMost Popular
India: Recovery Stalled by Vaccine Games? (The Honest Truth)
Apr 13, 2021Ajit Dayal on how India's vaccine strategy will impact the markets.
4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)
Apr 6, 2021Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.
An India Revival Stock I'm Bullish On... (Profit Hunter)
Apr 9, 2021This could take India to the position of 3rd largest economy.
Why Did the Market Crash on Monday? (Fast Profits Daily)
Apr 13, 2021In this video, I'll you what I think is the real reason behind yesterday's market crash.
A Unique Sector for Short-Term Profits (Fast Profits Daily)
Apr 12, 2021This ignored sector could deliver big short-term profits.
MoreOUR TOP 5 IDEAS
- Free Report: Multibagger Stock Ideas 2021
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Government debt way past target levels". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!