News– GST was launched in July,2017 with the vision of “one nation one tax”, it has seen quite some adaptations since then but still lacks in some key aspects. What was the vision behind GST’s Introduction It was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices. Many exemptions,… Continue reading “Goods and services tax as an unfinished agenda”
Tag: fiscal policies
Annual Report on State Finances: The vital third tier
News: Reserve Bank of India (RBI) has released its annual study of state finances. What are the findings of the report? -States’ gross fiscal deficit breached the 3% of gross domestic product (GDP) mark. -Combined revenue deficit of the state governments rose from 0.1% of GDP in 2018-19 to 2% of GDP in 2020-21 because… Continue reading Annual Report on State Finances: The vital third tier
On Union government accounts – Growth spending
News: Union government accounts for Q2 of 2021-22 were released. What does the report say? It showed that the government has a comparatively better fiscal position due to better revenue collection. Total revenue receipts were over 70% of the budget estimate. –Higher nominal growth, will also expand the economy and help contain the fiscal deficit… Continue reading On Union government accounts – Growth spending
GST rationalisation: Challenge and response
Synopsis: A revision of GST slab rates may create some disquiet, but, if cleverly crafted, it could be a game-changer for manufacturing. Introduction Recently, the group of ministers (GoM) was formed by the GST Council for rate rationalisation and correcting the inverted duty structure. The GoM has a very difficult task of balancing a number… Continue reading GST rationalisation: Challenge and response
Health, infra and fiscal stimulus will act as our economic panacea
Synopsis: Health, infra and fiscal stimulus are at the core of the government’s economic revival strategy as they hold significant potential to propel growth. Contents1 Introduction2 What are the indicators of a revival in the Indian economy?3 What steps were taken by the govt?4 What is the way forward? Introduction The covid pandemic and subsequent… Continue reading Health, infra and fiscal stimulus will act as our economic panacea
Regaining fiscal balance
Synopsis: The advance tax numbers suggest growth in revenue collection continues to remain strong. However, Central government finances would need careful management. Introduction In the current financial year, the fiscal position has improved significantly and the recovery in revenue collection has surprised many. By July-end, the government collected revenue worth over 37% of its Budget… Continue reading Regaining fiscal balance
A time to introspect: On GST Council meeting
What is the news? Recently, GST Tax Council held its first physical meeting during the pandemic. It approved various changes. Concessional tax rates on vital COVID-19 equipment such as oxygen concentrators will lapse on Sep 30, while the lower rates on medicines were extended till December. As there are no signs the virus and its variants… Continue reading A time to introspect: On GST Council meeting
Structural changes in GST
Synopsis: Several important decisions taken during the Goods and Services Tax (GST) Council’s 45th meeting in Lucknow last week. Contents1 What are the important decisions taken during the GST Council’s 45th meeting?2 Why the compensation won’t be extended beyond 2022?3 What is the reason for low revenue collection?4 What are the impacts of low revenue… Continue reading Structural changes in GST
Recommendations of 45th GST Council Meeting
What is the News? The Finance Minister has chaired the 45th Goods and Service Tax (GST) Council meeting. This was the first in-person GST meet since the Covid-19 pandemic. What are the key recommendations made at the GST Council meeting? Concession on Medicines Life-saving drugs Zolgensma and Viltepso used in the treatment of Spinal-Muscular Atrophy… Continue reading Recommendations of 45th GST Council Meeting
There finally seems to be a path forward for GST. Centre and states must strike bargain
Synopsis: After one and a half years of dispute, and with the economy showing signs of recovery, a path forward for the GST finally seems visible. This opportunity needs to be seized What has set back the GST for the past year and a half? Lack of revenues: In 2016-17 the various taxes that were… Continue reading There finally seems to be a path forward for GST. Centre and states must strike bargain
