Morning Alert.. *States fiscal deficits for FY24 likely to be | Equity99

Morning Alert..
*States fiscal deficits for FY24 likely to be close to 3.1% of GDP: Citi*
The actual fiscal deficit of states for the financial year 2023-24 (FY24) is expected to be closer to the original budgeted estimate of 3.1 per cent of the Gross Domestic Product (GDP) instead of the revised estimate of 3.5 per cent, with both revenue and expenditure showing a lower growth than estimated, an analysis of 22 state Budgets by Citi Research showed. According to Citi Research’s report titled ‘India Economics, State Finances: A Tale of Capex, Grants and Borrowings’, this indicates that “overall, the states are within their borrowing limits.” “However, at least 6 of the 22 states that we tracked have budgeted for a fiscal deficit higher than 3.5 per cent in FY25,” it said. The report suggested that grants from the Centre to states were falling due to no GST compensation funds and lower finance commission grants. Due to this, grants from the Centre which accounted for 18-19 per cent of total state revenues, could fall to 15 per cent for FY24-FY26, the report said. Besides, of the total Rs 2.95 trillion granted to states in the FY22-FY26 period by the Finance Commission, 87 per cent was already distributed in FY22-FY24. Grants would be substantially lower for the FY25-FY26 period, the report said.

*Global market action*
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*Primary market activities*
IPOs opening today
Ramdevbaba Solvent Ltd (NSE SME) – Issue size 50.27Cr
Grill Splendour Services Ltd (NSE SME) – Issue size 16.47Cr

*Commodities updates*
Gold – Rs 74360/10gm, Silver – Rs 83040/kg, Brcrude – Rs 7190/barrel, Copper – Rs 821.55/kg.

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