scholarly journals Governance and Economic Impact of Covid-19 in Indian Federation

2021 ◽  
Vol 67 (3) ◽  
pp. 452-469
Author(s):  
V. N. Alok ◽  
Madhulika Jatoliya ◽  
Animesh Pareek
Keyword(s):  
Economic Downturn ◽  
Fiscal Deficit ◽  
Budget Management ◽  
Fiscal Responsibility ◽  
Real Gdp ◽  
Revenue Sources ◽  
Target Set ◽  
Fiscal Space ◽  
The Government ◽  
The Impact

In the year 2019–2020, Indian economy was already on its trough and the incidence of coronavirus pandemic in 2020–2021 has further deteriorated the economic condition, limiting the fiscal space of the government. As need of the hour was to take some supportive measures to handle such an unusual situation, therefore various monetary and fiscal measures were taken by the government to overcome the impact of the pandemic. This resulted in overshooting of the fiscal deficit target set under the Fiscal Responsibility and Budget Management (FRBM) Act (2003) and made the government to revise its fiscal deficit target of 3.5% of Gross Domestic Product (GDP) in 2020–2021 Budget Estimates (BE) and 9.5% in 2020–2021 Revised Estimates (RE), and further it is projected as 6.8% of GDP for 2021–2022 (BE). After an estimated 7.7% pandemic-driven contraction in 2020–2021, India’s real GDP is projected to record growth of 11.0% in 2021–2022 and nominal GDP by 15.4%. The government is expected to generate 23% more revenue and has budgeted to increase its spending by only 0.95% in FY22 as compared to FY21 (RE). In order to deal with pandemic situation, the economists have suggested more active, counter-cyclical fiscal policy to enable growth during economic downturn. However, due to lack of revenue sources, it also becomes important to strategise the path for fiscal consolidation for the ensuing years.

Paraguay's COVID-19 response may lose initial lustre

2020 ◽  
Keyword(s):  
Fiscal Deficit ◽  
Bond Issue ◽  
Fiscal Responsibility ◽  
Content Type ◽  
Timely Response ◽  
Global Spread ◽  
The Government ◽  
The Impact

Subject The impact of COVID-19. Significance In response to the COVID-19 outbreak, the government has ditched the Fiscal Responsibility Law (LRF), in force since 2015, at the same time launching a 1-billion-dollar bond issue in order to cover a surging fiscal deficit. Paraguay has won plaudits for its timely response to the global spread of the pandemic with the introduction of a strict quarantine. Impacts Fiscal limits may continue to be breached as elections draw nearer. Business pressures will continue to tilt the balance towards increased borrowing rather than increased taxes. The government could lose the momentum gained from its COVID-19 response if related corruption allegations mount.

scholarly journals Cotton Imports and GDP of Indonesia- Cointegration Analysis

2021 ◽  
pp. 149-154
Author(s):  
P. Soumya ◽  
R. A. Yeledhalli
Keyword(s):  
High Speed ◽  
Cointegration Analysis ◽  
Causality Analysis ◽  
The Real ◽  
Real Gdp ◽  
Use Of Technology ◽  
Long Run ◽  
Negative Effect ◽  
The Government ◽  
The Impact

The study examines the impact of cotton imports on the real GDP (Gross Domestic Product) of Indonesia for a period from 1992 to 2018 using ARDL approach and Granger causality analysis. Results of the study indicated that cotton imports have negative effect on economic growth. For every 1% increase in cotton imports the real GDP decreased by 0.107% in the long run. Any disequilibrium in the model is adjusted with a high speed of adjustment of 107.7% in less than a year. Shocks and the trend are adjusted in less than one year. There is no causality between imports of cotton and the real GDP. The study suggested effort should be taken by the government to increase yield of cotton by the use of technology and also a need to initiate farmers to take up cotton farming. 

Greek economy could slip into recession again

2017 ◽  
Keyword(s):  
Private Investment ◽  
The United States ◽  
Gdp Growth ◽  
Investment Climate ◽  
Content Type ◽  
Goods And Services ◽  
Real Gdp ◽  
Greek Economy ◽  
Target Set ◽  
The Government

Subject Greece’s stagnating economy. Significance The economy failed to turn a corner in 2016, registering zero real GDP growth. The ambitious 2.7% GDP growth target, set for 2017 by the government and Greece’s lenders, now looks hard to achieve. However, the economy’s stabilisation, albeit at a level much lower than before the crisis, is evident. Impacts A swift end to the bailout review might lift uncertainty and improve the investment climate, allowing both domestic and private investment. Inclusion into the ECB’s quantitative easing programme would help inject additional liquidity into the economy, stimulating credit growth. Over the medium term, rising protectionism in the United States and Europe might restrict trade, reducing Greek goods and services exports.

scholarly journals Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach

2018 ◽  
Vol 10 (2) ◽  
pp. 231
Author(s):  
Tshembhani Mackson HLONGWANE ◽  
Itumeleng Pleasure MONGALE ◽  
Lavisa TALA
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Fiscal Policy ◽  
Negative Impact ◽  
National Development ◽  
Real Gdp ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Government ◽  
The Impact

Fiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.

DOES FISCAL DEFICIT CROWD OUT PRIVATE CORPORATE SECTOR INVESTMENT IN INDIA?

2016 ◽  
Vol 64 (05) ◽  
pp. 1201-1224 ◽  
Author(s):  
RANJAN KUMAR MOHANTY
Keyword(s):  
Negative Impact ◽  
Investment Decision ◽  
Private Investment ◽  
Fiscal Deficit ◽  
Corporate Sector ◽  
Significant Negative Impact ◽  
Short Run ◽  
Financing Pattern ◽  
The Government ◽  
The Impact

This paper examines the impact of fiscal deficit and its financing pattern on private corporate sector investment in India, for the period from 1970–1971 to 2012–2013. Using Autoregressive Distributed Lag (ARDL) Models, the study finds that fiscal deficit crowds out private investment both in the long run and in the short run. The results also show that internal (domestic) financing of fiscal deficit has significant negative impact on private investment but external (foreign) financing of fiscal deficit has insignificant effect. In the short run, availability of bank credit plays a more important role in investment decision making than the rate of interest in India. The study suggests that government should maintain the fiscal deficit within a sustainable level by reducing its unnecessary non-developmental expenditure, subsidies etc. The government should restructure its financing pattern of fiscal deficit since internal financing has a significant negative impact on private investment.

scholarly journals ECONOMIC AND FISCAL CONSEQUENCES OF THE COVID-19 PANDEMIC: THE CASE STUDY OF NORTH MACEDONIA

2021 ◽  
Vol 14(63) (2) ◽  
pp. 101-110
Author(s):  
Rufi Osmani ◽  
Keyword(s):  
Secondary Data ◽  
Economic Consequences ◽  
Fiscal Deficit ◽  
Real Sector ◽  
Government Assistance ◽  
The Real ◽  
The Government ◽  
The Impact

This paper aims to analyse the impact of Covid-19 on economic and fiscal consequences in North Macedonia. In addition, the paper assesses the effects of economic and fiscal packages implemented by the Government of the country. The study uses secondary data in order to find out the real consequences caused by Covid-19 pandemic in the economy of North Macedonia. The findings reveal thatCovid-19 pandemic produced negative economic and fiscal consequences during 2020 in all sectors. Moreover at the end of 2020 the real sector of the economy recorded a 4.5% decline in GDP, the fiscal deficit achived a level of -8.1% of the GDP. The findings of the paper show that government assistance through various packages, partly affected the reduction of negative economic consequences of Covid-19.

Is Fiscal Deficit Essential for Stimulating Economic Growth in Developing Economies? Theory and Empirical Evidence from India

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Negative Impact ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

The primary purpose of this paper was to assess the impact of fiscal deficit on the economic growth of the Indian economy and find out the causality between fiscal deficit and economic growth from 1981-82 to 2019-20. To analyse the long-run relationship between the variables Johansen Co-integration test was used; after verifying the existence of long-run relationship among variables, the Vector Error Correction Model (VECM) was used, and the Granger Causality test was also used for investigating the direction of causality between pair of variables. The findings of the study supported the ideology of classical economists in which they neglected the government intervention for the growth and development of an economy. The results showed that in long run, fiscal deficit had a significant negative impact on economic growth as one percent increase in fiscal deficit demoted the GDP growth rate by 0.075 percent, whereas in the short run, the impact was also found negative, but it was significant only one lag. Simultaneously, there was unidirectional causality found from fiscal deficit to GDP growth.

Fiscal Consolidation versus Infrastructural Obligations

2017 ◽  
Vol 9 (1) ◽  
pp. 49-67 ◽  
Author(s):  
Anantha Ramu M.R. ◽  
K. Gayithri
Keyword(s):  
Significant Contribution ◽  
Central Government ◽  
Fiscal Deficit ◽  
State Governments ◽  
Capital Investments ◽  
Budget Management ◽  
Indian Government ◽  
Fiscal Responsibility ◽  
Private Participation

This article analyses two important issues pertaining to Indian economy. One is the numerical target under rule-based fiscal correction mechanism being followed by Indian government and second is on infrastructural investment requirements. India lags behind many countries in the world including some of the developing ones both in terms of stock and quality of infrastructure. There exist huge investment requirements in order to foster the economic growth and efficiently utilise the available resources. In the recent years, there is a significant contribution from the private sector towards infrastructural investment. However, private participation is concentrated in few sectors which are commercially viable and hence in the remaining key areas, like rural infrastructure, government is the sole investor. In India, excess spending by the central government is restricted under Fiscal Responsibility and Budget Management Act, 2003 and for the state governments under state-specific Fiscal Responsibility Legislations. The Act limits the fiscal deficit (FD) to 3 per cent of GDP for central government and 3 per cent of GSDP for state governments. FD is capped due to its adverse impact on macroeconomy. However, the available literature shows mixed evidence. Most importantly, revenue deficit (RD) component covers major portion of FD and only a meagre amount is left for capital investments. This article debates whether 3 per cent cap on FD is advisable in all the circumstances and also analyses whether infrastructural investment gap can be filled with available fiscal-deficit amount. This article finds that there is an infrastructural investment gap of ‘5,165.20 billion in the 12th Plan period and concludes that it makes no harm even though FD crosses 3 per cent cap given that amount in entirety is spent on capital formation.

scholarly journals Rearmament to the Rescue? New Estimates of the Impact of “Keynesian” Policies in 1930s' Britain

2013 ◽  
Vol 73 (4) ◽  
pp. 1077-1104 ◽  
Author(s):  
Nicholas Crafts ◽  
Terence C. Mills
Keyword(s):  
Government Expenditure ◽  
Private Investment ◽  
Public Works ◽  
Defense Spending ◽  
Fiscal Multiplier ◽  
Quarterly Data ◽  
Time Series Econometrics ◽  
Real Gdp ◽  
The Government ◽  
The Impact

We report estimates of the fiscal multiplier for interwar Britain based on quarterly data, time-series econometrics, and “defense news.” We find that the government expenditure multiplier was in the range 0.3 to 0.8, much lower than previous estimates. The scope for a Keynesian solution to recession was less than is generally supposed. We find that rearmament gave a smaller boost to real GDP than previously claimed. Rearmament may, however, have had a larger impact than a temporary public works program of similar magnitude if private investment anticipated the need to add capacity to cope with future defense spending.

scholarly journals Fiscal Management in India: A Study of the Impact of FRBM Act

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Ankita Singh ◽  
Akanksha Singh Fouzdar
Keyword(s):  
Balance Of Payments ◽  
Statistical Techniques ◽  
Fiscal Deficit ◽  
Aggregate Consumption ◽  
Fiscal Management ◽  
The Government ◽  
The Impact ◽  
Internal Debt

Fiscal deficit, the gap between government's aggregate receipts and aggregate consumption, gives the flag to the union about the aggregate acquiring necessary from all sources. Since these deficits had to be met by borrowings, the internal debt of the government accumulated rapidly from 35 percent of GDP at the end of 1980-81 to 53 percent of GDP at the end of 1990-91. Fiscal profligacy seen to have caused balance of payments crisis in 1991 and a reduction in the fiscal deficit was therefore an urgent priority at the start of the reforms. This paper aims at describing intricacies of fiscal deficit and to assess the impact of FRBMA on fiscal deficit in India from 1991-92 to 2016-17 by statistical techniques. The study observes a significant impact of FRBMA on fiscal deficit discipline in India and offers some valuable suggestions for effective fiscal governance and achieving targets pre-set in FRBMA.

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