oppn parties Good Signs Of Economic Recovery

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  • After both candidates got 34 votes in HP. Congress' Abhishek Singhvi lost in the draw of lots as the BJP candidate was declared winner
  • ED issues 8th summons to Delhi CM Arvind Kejriwal in the excise policy scam case
  • Prime Minister Modi introduced the three IAF group captains - Prashanth Nai, Ajit Kirshnan and Angad Pratap - and Wing Commander Shubhangshu Shukla, who have been shortlisted for the first manned space mission of ISRO
  • Centre appointed former SC judge A M Khanwilkar as the new Lokpal. It also named three judicial and three non-judicial members of the Lokpal panel
  • A 9-judge Supreme Court bench started hearings on whether states are entitled to tax mineral-rich land in their respective states
  • Taking note of the huge disparity in charges in government and private hospitals for most treatment procedures, the Supreme Court asked the Centre to strictly enforce the CGHS rates or warned that the court would have to step in
  • Calcutta HC ruled that regardless of a woman employee being regualr or on contract and whether her contract permitted maternity leave, employers cannot deny childbirth and maternity leave to any women employee as it 'seeks to create a class within a class which is not permissible'
  • Sebi asks MF companies to disclose more risks associated with their small and mid cap funds
  • Vodafone Idea board approves Rs 45000cr funding infusion
  • NCLT clears Hinduja acquisition of Reliance Capital at Rs 9650cr upfront payment within 90 days of approval of resolution plan
  • Stocks returned to winning ways on Tuesday: Sensex gained 305 points to 73095 and Nifty 76 points to 22198
  • Commonwealth Chess championships: Mitrabha Guha wins title by scoring 7.5 points in 9 rounds
  • WPL: RCB beat Gujarat Giants by 8 wickets
  • Bengal starts paying MNREGA workers out of own funds as Central disbursement is stopped due to alleged 'discrepancies' in accounts
  • ISC chemistry paper postponed to March 21 just hours before start of exam due to "unforeseen circumstances"
Cross-voting in Rajya Sabha elections enables BJP to snatch seats in UP & Himachal /////// Congress government in Himachal in trouble as some MLAs revolt
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.