India’s interim budget 2019-20 offers cash dole to small farmers before general election

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Pitching a strong re-election bid, India’s BJP-led NDA government announced the biggest income tax sops for middle class, including complete exemption for income up to Rs 5 lakh, and Rs 6,000 annual cash dole to poor farmers in a scheme that will cost Rs 75,000 crore per year. Converting a vote on account speech into […]

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Saudi 1Q deficit narrows, some allowance cuts reversed, says Fitch

Saudi Arabia’s sharply narrower first quarter deficit highlights the positive fiscal impact of higher oil prices, but the partial reversal of a cut in public sector allowances shows reforms are not yet well entrenched, Fitch Ratings said. Saudi Arabia’s Ministry of Finance published the government’s first-ever quarterly budget performance update on 11 May as part […]

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India plans to sell stakes in state-owned energy, utility and steel firms to bridge fiscal deficit

India has plans to sell part stakes worth $5.4 billion in seven state-run energy and steel companies during the current financial year, as the government attempts to bridge its fiscal deficit. The government has increased spending on critical infrastructure and has agreed to keep the fiscal deficit to 3.2 percent of the country’s gross domestic […]

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India says can live with oil at upto $60/barrel

India’s fiscal maths and inflation calculations will not be impacted if the price of oil remains below $60/barrel, the junior finance minister was quoted as saying. Oil prices, which fell dramatically last year, have been inching up and it a 11-month high of $50/barrel recently, raising fears that India – which imports nearly 80 percent […]

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China’s pursuit of growth target could extend economic imbalances – Moody’s

Maintaining robust economic growth will remain China’s priority in 2016, but some of the implications of this approach will be credit negative, Moody’s Ratings Agency has warned. China’s relatively robust GDP growth of 6.9 percent in 2015 owed to significant monetary and fiscal stimulus — reflecting this focus — which prevented a sharper slowdown from […]

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Currency flexibility, policy vigilance supports credit quality of Asian sovereigns, says Moody’s

Fiscal and monetary policy vigilance and efforts to revive domestic sources of growth will support the sovereign credit profiles of several Asian counties during a period of heightened external pressures., Moody’s Investors Services said. It said in a statement that the rating agency’s conclusions were contained in a just-released report that covers India, Indonesia, Malaysia, […]

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