Fiscal deficit of states to hit peak of Rs 8.7 trn as tax collections slide


The Covid pandemic-induced lockdown and consequent slump in economic activity will hit tax collections of states and result in a near four-fold expansion in their revenue deficits this fiscal, year-on-year, ratings agency Crisil said in a report.

With this, the states’ aggregate gross (GFD) will not only get expanded to an all-time high of Rs 8.7 trillion, or 4.7 per cent of GSDP, but also skew its composition towards revenue deficit which is relatively less value-accretive towards future tax potential, the report said.

Though tax collections are expected to improve slowly with improving economic outlook, higher interest burden because of high debt funding of this year’s GFD, coupled with sticky revenue expenditures, may keep revenue deficits high for states and GFD composition skewed over the next 2-3 years. This will, in turn, increase the credit risk for states.

It may be noted that the Centre had already given extra leeway to states this year to borrow to meet all expenditure requirements. An additional borrowing limit of 2 per cent over and above 3 per cent of gross state domestic product (GSDP) already allowed had been provided to

Gateway Distriparks Q3 sees 99% jump in consolidated profit at Rs 37 cr


Integrated logistics services provider on Tuesday reported a 99.02 per cent jump in its consolidated profit at Rs 36.62 crore in the quarter ended December.

The company had posted a profit of Rs 16.39 crore in the third quarter of financial year 2020-21.

Total sales grew 3.88 per cent to Rs 316.29 crore during the quarter under review as against Rs 304.48 crore in the third quarter of the previous financial year, the company said in a release.

Rail container volumes were up 8.8 per cent to 67, 042 TEUs (twenty-foot equivalent unit) as against 61,634 TEUs in the third quarter of financial year 2020-21, while the CFS business declined 11 per cent to 84060 TEUs, which was 94,337 TEUs in December quarter of the financial year 2020-21.

“The figures do not represent normal operations, due to COVID-19, and so that to that extent are not strictly comparable with the prior period,” the company said in an investors’ presentation.

One of the largest private Container Freight Stations (CFS) operators in India, GDL operates six such stations, with two at Nhava Seva and one

Biden’s Cabinet Picks Say US To Stand Against China Trade Abuses


President-elect Joe Biden’s picks to lead economic and foreign policy signaled on Tuesday that there would be no letup in Washington’s efforts to combat China’s trade abuses.

The comments from the incoming administration reflect an unusual area of common ground with outgoing President Donald Trump, who over the past four years unleashed an aggressive and costly trade war that imposed billions of dollars in punitive tariffs on Chinese goods.

Janet Yellen, Biden’s pick for Treasury secretary, and Antony Blinken, who was tapped to lead the State Department, nonetheless emphasized areas of difference, particularly the incoming administration’s commitments to working with US allies and promoting investments to make American firms and workers more competitive against Beijing.

Responding to questions from the Senate Finance Committee at her confirmation hearing on Tuesday, Yellen called China “our most important strategic competitor.”

She accused Beijing of “undercutting American companies” by offering illegal subsidies, dumping products at below-market prices, stealing intellectual property and erecting barriers to US exports.

“We need to take on China’s abusive unfair and illegal practices,” she said, adding “we’re prepared to use the full array of tools” to address those issues.

Nominated by US President-elect Joe Biden, Yellen said the incoming administration

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