PARAGRAPH, WORDS AND MEANING
PARAGRAPH OF THE DAY –
Fiscal risks
Fiscal risks may also be higher with the reliance on extra-budgetary resources for financing a number of ambitious government spending programmes. In the Budget for 2018-19, the total outlays for three focus areas, namely, agriculture and rural livelihoods, infrastructure and education, and health and social sectors, amount to 11.6% of GDP as per Annexures 1, 2 and 3 of the Finance Minister’s speech. These are to be funded using budgetary and extra-budgetary resources. Budgetary resources constitute only 16.4% of the total outlay. The balance, 83.6%, is to be raised as an extra-budgetary resource by the public sector enterprises concerned, special purpose vehicles and other similar institutions. Thus, the extra budgetary resources are meant to contribute almost 9.7% of GDP to finance the stipulated outlays as detailed in the annexures to the Minister’s speech. A substantial part of this may only be based on borrowing as the relevant bodies may have limited surpluses. Any dependence on borrowing for these extra-budgetary resources along with the borrowing requirements of the State governments while the saving rate is falling can put considerable pressure on interest rates.
The projected fiscal deficit of 3.3% of GDP for 2018-19 is itself contingent upon revenues rising to the budgeted levels and expenditures being contained at levels indicated in the Budget. There are concerns and doubts on both counts. Another year of slippage can be damaging. We also need to note that interest payments to revenue receipts of the Centre stand at 35.3%. This restricts the space for other development expenditures. Some people ask whether it is at all necessary to have such rules as mandated fiscal deficits or inflation targets. Rules versus discretion is an old issue that has been debated extensively. If the rules are too rigid, they are likely to break down. But a complete abandonment of rules can lead to instability. In fact, the fiscal deficit rule in India has been honoured more in breach than in observance. More than ever, the fiscal deficit needs continued vigilance. We need to stay the course.
WORD AND MEANING :-
Ambitious
Meaning: Having or showing a strong desire and determination to succeed.
Example: “A ruthlessly ambitious woman”
Synonyms: Aspiring, Determined
Antonyms: Unambitious, Lazy
Outlays
Meaning: An amount of money spent on something.
Example: “A modest outlay on local advertising”
Synonyms: Expenditure, Expenses
Stipulated
Meaning: Demand or specify (a requirement), typically as part of an agreement.
Example: “He stipulated certain conditions before their marriage”
Synonyms: Specify, Set down
Annexures
Meaning: A separate part of a legal agreement, report, etc. that gives extra information.
Example: “The Inquiry will result in a public report but it may be necessary to present some material in a confidential annexure”
Contingent
Meaning: Subject to chance.
Example: “The contingent nature of the job”
Synonyms: Chance, Accidental
Antonyms: Predictable
Concerns
Meaning: Anxiety; Worry.
Example: “Carole gazed at her with concern”
Synonyms: Anxiety, Worry
Antonyms: Serenity, Peace of mind
Discretion
Meaning: The quality of behaving or speaking in such a way as to avoid causing offence or revealing confidential information.
Example: “She knew she could rely on his discretion”
Synonyms: Circumspection, Care
Antonyms: Indiscretion, Rashness
Abandonment
Meaning: The action or fact of abandoning or being abandoned.
Example: “She had a feeling of utter abandonment and loneliness”
Synonyms: Desertion, neglect, stranding; More
Antonyms: Adoption
Breach
Meaning: An act of breaking or failing to observe a law, agreement, or code of conduct.
Example: “A breach of confidence”
Synonyms: Contravention, Violation
Vigilance
Meaning: The action or state of keeping careful watch for possible danger or difficulties.
Example: “Security duties that demand long hours of vigilance”
Synonyms: Watchfulness, Careful observation
Antonyms: Inattentiveness
