oppn parties Good Signs Of Economic Recovery

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
Good Signs Of Economic Recovery

By A Special Correspondent
First publised on 2021-01-01 10:00:03

With GST collections at Rs. 1,15,174 lakh crore in December being the highest since the integrated tax system was introduced in the country, the economy seems to be well on the path of recovery. The collections showed that domestic revenues had jumped by 8 percent and import by 27 percent than last month. Year-on-year, the collections were 12 percent higher than December 2019. Filing of GSTR-3B returns has also jumped substantially.

The government said that "this is the highest growth in monthly revenues for the last 21 months. This has been due to combined effect of the rapid economic recovery post-pandemic and the nation-wide drive against GST evaders and fake bills with many systemic changes introduced recently, which have led to improved compliance".

The finance ministry statement spells out the reasons succinctly. The economy is recovering fast and the efforts of the government in providing relief packages and the policy of the RBI in resisting the temptation to mop up excess liquidity in the system despite inflation being above the range specified by the MPC and keep an accommodative stance have borne fruit. Demand is picking up across the board (as reflected in the rise in Purchase Manager's Index). Compliance has also jumped up due to the drive against evaders and cross checking of uploaded data.

But the only worry is the continued decline in the core sector. The eight key core sectors contracted by 2.6 percent in November.  It was the 9th straight month of decline. It is a well known fact that vigorous economic recovery happens when core sectors perform well as they set off a chain reaction which propels all sectors of the economy. The government has till now resisted all appeals to invest heavily in infrastructure. But with tax collections buoyant, it should seriously consider heavy investments to provide a bigger impetus to the revival.