oppn parties Good Signs Of Economic Recovery

News Snippets

  • Supreme Court sentences Congress leader Navjot Singh Sidhu to one year rigorous imprisonment in the 1988 road rage case
  • Home Minister Amit Shah says rights should not be demanded before fulfilling responsibilities and that universities are no place to wage ideological battles
  • NIA court convicts JKLF chief Yasin Malik in terror funding case after he pleads guilty of all charges
  • A study backed by PM-EAC has recommended universal basic income and urban job guarantee and greater spend on social sector schemes
  • Supreme Court rules that the decisions of the GST Council are not binding on the Centre and the states, leaving the door open for states to levy further taxes
  • After sustained campaign by BJP MP Arjun Singh, the Centre today withdrew the jute price cap order, industry welcomes move
  • Akasa Air might postpone its July launch due to late arrival of aircrafts
  • Metro Cash & Carry decides to sell Indian operations. All major players, including Reliance retail and Amazon, are likely to bid
  • Local and global cues spook the markets on Friday - Sensex crashes 1416 points to 52792 and Nifty by 430 points to 15809
  • IPL: RCB crushes GT by 8 wickets as Virat Kohli returns to form with a well-made half century
  • Nikhat Zareen is world champion in flyweight category. Wins gold at Women's World Championships at Instanbul
  • Supreme Court uses its special powers under Article 124 to release A G Perarivalan, a Rajiv Gandhi assassination convict
  • Indrani Mukherjea, prime accused in the Sheena Bora murder case, gets bail from Supreme Court after 6.5 years in jail
  • Hardik Patel quits Congress, says top leaders distracted by mobile phones and state leadership busy arranging 'chicken sandwiches' for them
  • Anil Baijal resigns as Lieutenant Governor of Delhi citing "personal reasons"
Nikhat Zareen is crowned world champion in the flyweight (52Kg) category at the Women's World Championships in Istanbul /////// Supreme Court sentences Navjot Singh Sidhu to rigorous imprisonment of one year in the road rage case /////// Sunil Jakhar, who quit the Congress a few days ago, joins the BJP
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.