{"id":236320,"date":"2023-04-05T20:16:58","date_gmt":"2023-04-05T14:46:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=236320"},"modified":"2023-04-05T20:16:58","modified_gmt":"2023-04-05T14:46:58","slug":"our-k-shaped-recovery-is-a-story-that-adds-up","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/our-k-shaped-recovery-is-a-story-that-adds-up\/","title":{"rendered":"Our K-shaped recovery is a story that adds up"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cOur K-shaped recovery is a story that adds up<\/strong>\u201d published in Live<\/strong> Mint <\/strong>on\u00a05th<\/sup> April 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 <\/strong>Inclusive Growth <\/strong><\/p>\n

Relevance: <\/strong>about declining tax-payers<\/strong><\/p>\n

News<\/strong>: The article discusses the various reasons behind declining tax-payers in India.<\/p>\n

What are the different reasons about the decline in tax-payers in India?<\/strong><\/h2>\n

The Periodic Labour Force Survey (PLFS)<\/strong> data shows that all-India poverty went up during the lockdown quarter (till June 2020), but declined thereafter for four quarters.<\/p>\n

The poverty declined due to state aid such as free food and remote employment.<\/p>\n

However, an accurate picture of poverty caused by the pandemic is still cannot be determined by the data and statistics.<\/p>\n

What are the findings associated with income tax data?<\/strong><\/h2>\n

Income-tax data has been recently placed in the Parliament. There are debates over the shrunken population of the income tax payer under the \u20b95 lakh category.<\/strong><\/p>\n

This group\u2019s size peaked at 50 million in 2018-19, shrank to 46.3 million in 2019-20 and then again to 41.2 million in covid-stricken 2020-21.<\/p>\n

The arguments like the net tax benefits and upward movement of the people<\/strong> from lower slab to the next are given to justify that reduction is not due to poverty increase.<\/p>\n

However, reasons such as pre-pandemic distress, covid and a smaller tax base are the main reasons<\/strong> behind the decline in the taxpayers.<\/p>\n

Moreover, if there has been decline due to upward shifts and tax benefits, the shortfall still suggests a base-level income crunch, as consistent with surveys like ICE360.<\/p>\n

Further, it is argued that India\u2019s income Gini coefficient dropped as a result of fiscal transfers.\u00a0<\/strong>However, the Gini coefficient compares a huge population, so it does not become clear to know the beneficiary of the tax benefits.<\/p>\n

It is also argued that India had a <\/strong>K-shaped recovery<\/strong><\/a> after the pandemic<\/strong>.<\/p>\n

However, its K-shaped recovery is more about divergent wealth rather than income.<\/strong> For instance,<\/strong> asset prices soared and stocks portfolios made gains over the pandemic.<\/p>\n

Due to which, Oxfam and other reports provided that India\u2019s wealth gap is widening after the pandemic.<\/p>\n

Must Read:<\/strong> The case for an inequality boom in India is greatly exaggerated<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cOur K-shaped recovery is a story that adds up\u201d published in Live Mint on\u00a05th April 2023. Syllabus: GS 3 \u2013 Inclusive Growth Relevance: about declining tax-payers News: The article discusses the various reasons behind declining tax-payers in India. What are the different reasons about the decline in tax-payers… Continue reading Our K-shaped recovery is a story that adds up<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-236320","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/236320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=236320"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/236320\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=236320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=236320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=236320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}