The country's current account Deficit widened to 2.5% of GDP in the third quarter of the current fiscal from 2.1% a year ago, primarily on account of a higher trade deficit though the foreign exchange reserves continued to soar.
Releasing the data on balance of payments, the Reserve Bank said that in absolute terms, the CAD or the gap between inflow and outflow of FX in the current account was USD 16.9 billion in October-December 2018, up from USD 13.7 billion in the year-ago period.
Releasing the data on balance of payments, the Reserve Bank said that in absolute terms, the CAD or the gap between inflow and outflow of FX in the current account was USD 16.9 billion in October-December 2018, up from USD 13.7 billion in the year-ago period.
The RBI said friday, For the reporting week, foreign currency assets -- a major component of the overall reserves -- increased by USD 1.031 billion to USD 378.805 billion.
The CGA said it stood at Rs 8.51 Lakh Crore as against the revised estimate (RE) of Rs 6.34 lakh crore for the entire year, As regards the fiscal deficit data for April-February 2018-19.
The government's tax revenue stood at Rs 10.94 lakh crore and non-tax revenue was Rs 1.7 lakh crore.
Commenting on the CGA data,the chief economics, Devendra Kumar Pant India Ratings and Research said slow pace of tax collection would keep pressure on fiscal deficit.
A higher GDP number than the one used in budget will help government move closer to FY19 fiscal deficit at 3.4% of GDP, he added.
The finance ministry also announced the government's market borrowing Programme through dated securities and treasury bills for the first half of the next fiscal beginning April 1 .
A higher GDP number than the one used in budget will help government move closer to FY19 fiscal deficit at 3.4% of GDP, he added.
The finance ministry also announced the government's market borrowing Programme through dated securities and treasury bills for the first half of the next fiscal beginning April 1 .
Gross borrowing in the first half of the 2019-20 fiscal has been pegged at Rs 4.42 lakh crore.
The remaining Rs 2.68 lakh crore or 37.7 per cent of the total gross borrowing would be raised from the markets by floating government bonds and treasury bills during October-March period.
The net borrowing in the first half (April-September) would be Rs 3.40 lakh crore. The second half net borrowing would Rs 1.33 lakh crore due to a buyback of Rs 50,000 crore.
The RBI said in statement "The widening of the CAD (current account deficit) on a year-on-year basis was primarily on account of a higher trade deficit at USD 49.5 billion as compared with USD 44.0 billion a year ago," .
The remaining Rs 2.68 lakh crore or 37.7 per cent of the total gross borrowing would be raised from the markets by floating government bonds and treasury bills during October-March period.
The net borrowing in the first half (April-September) would be Rs 3.40 lakh crore. The second half net borrowing would Rs 1.33 lakh crore due to a buyback of Rs 50,000 crore.
Pros :-The deficit, however, had moderated to USD 19.1 billion or 2.9% of GDP in the preceding quarter (July-September).
The RBI said in statement "The widening of the CAD (current account deficit) on a year-on-year basis was primarily on account of a higher trade deficit at USD 49.5 billion as compared with USD 44.0 billion a year ago," .
Portfolio investment Recorded Net Outflow of USD 2.1 billion in third quarter of 2018-19 – as compared with an inflow of USD 5.3 billion in corresponding period of last year – on account of net sale in the equity market, the RBI said.
Another set of RBI data showed India's FX reserves continued to surge for the third week in a row, adding USD 1.029 billion at USD 406.667 billion in the week to March 22.
Cons:-Portfolio investment recorded net outflow of USD 2.1 billion in third quarter of 2018-19 – as compared with an inflow of USD 5.3 billion in corresponding period of last year – on account of net sale in the equity market, the RBI said.
Another set of RBI data showed India's FX reserves continued to surge for the third week in a row, adding USD 1.029 billion at USD 406.667 billion in the week to March 22.
CAD increased to 2.6% of GDP during the April-December 2018 period, from 1.8% in April-December 2017 on the back of widening of the trade deficit.
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