Wait...

Online Export Import Data Search Search

Complete Training Video : Click Here

GST set to bring India’s tax-GDP ratio close to 12 pc; sharp jump in welfare spending in next 2 year.


Date: 11-08-2017
Subject: GST set to bring India’s tax-GDP ratio close to 12 pc; sharp jump in welfare spending in next 2 year
India's tax-GDP (gross domestic product) ratio will inch close to 12 percent while expenditure on centrally sponsored schemes will likely rise 23.6 percent to Rs 4.65 lakh crore by 2019-20, as the Narendra Modi-led government gears up for the general election after completing a five-year term.

“Going forward in the years 2018-19 and 2019-20, the gains from expansion of the tax base due to the introduction of GST and the increased surveillance post-demonetisation will ensure that tax-GDP ratio will increase by 30 bps in each of these fiscals,” the Medium Term Expenditure Statement (MTEF) said.

The tax-GDP ratio is projected to reach 11.6 percent in 2018-19 and 11.9 percent in 2019-20 respectively, the according to the MTEF report tabled in the Lok Sabha today.

The report further said that any shocks to tax collections due to the introduction of Goods and Services Tax (GST) from July 1 will be absorbed in 2017-18.

“Hence, the tax-GDP ratio (in 2017-18) will remain at the level of 2016-17,” the report said.

The MTEF Statement provides medium term perspective to the fiscal management and furthers the government’s focus towards fiscal consolidation. It is a three-year rolling target for the expenditure indicators with specification of certain assumptions and risks involved.

The objective of the MTEF is to provide closer integration between budget and the FRBM (Fiscal Responsibility and Budget Management) Statements.

Total expenditure of the government will touch Rs 25.95 lakh crore in 2019-20, up from Rs 21.46 lakh in the current financial year.

Defence, which constitutes 28 percent of the government's total capital expenditure is projected to rise 22 percent to Rs 1.11 lakh crore, while transport is expected to witness a jump of 32.2 percent to 1.47 lakh crore in 2019-20 as compared with the current fiscal.

Among subsidies, the government plans to spend 60 percent on food, with its subsidy touching Rs 2 lakh crore in the next two years, up 37.6 percent as compared with the current year's budgeted estimate of Rs 1.45 lakh crore. On the contrary, the subsidy on fuel will decline 28 percent by 2018-19 to Rs 18,000 crore.

“The subsidy bill as a percent of GDP is budgeted to be 1.4 percent in 2017-18. This ratio has been projected to decrease by 0.1 percentage point over the course of the next two years. The ultimate aim of the government is to eliminate the subsidy on LPG Cylinders by end March 2018. After the successful implementation of direct benefit transfer for LPG the Government is now focused on reducing kerosene subsidies,” the report said.

Centrally sponsored schemes such as Mahatma Gandhi National Rural Employment Guarantee Programme, the government has projected an increase in expenditure by a fourth to Rs 60,000 crore in 2019-20. Deen Dayal Upadhaya Gram Jyoti Yojna will attract Rs 10,000 crore in 2019-20, Rs 6,300 crore in 2018-19, from an allocation of Rs 4,814 crore in the current fiscal.

The Centre will spend Rs 29,000 crore for Sarva Siksha Abhiyaan programme, up 23.4 percent and Rs 16,877 crore for Swacch Bharat Mission, up 21 percent from 2017-18.

The government also plans to double its spending on housing scheme Pradhan Mantri Awas Yojana to Rs 13,000 crore in the next two years.

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 07-12-2017
Notification No. 113 /2017-Customs (N.T.)
Exchange Rates Notification No.113/2017-Custom(NT) dated 07.12.2017

Date: 05-12-2017
Public Notice No. 41/2015-2020
Revised edition of the Handbook of Procedures of Foreign Trade Policy, 2015-2020

Date: 30-11-2017
Notification No. 112 /2017-Customs (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver- Reg.

Date: 28-11-2017
Notification No. 111 /2017-Customs (N.T.)
Appointment of Common Adjudicating Authority

Date: 27-11-2017
Notification No. 90/2017-Customs
Indian Customs Notification No. 90 /2017 - Customs

Date: 27-11-2017
Notification No. 40/2015-2020
Relaxation in export policy for export of Red Sanders wood by Government of Karnataka under Sl. No. 188, Chapter 44 of Schedule 2 of ITC (HS) Classification of Export and Import 2012

Date: 24-11-2017
Notification No. 18/2017-Customs (N.T./CAA/DRI)
Appointment of Common Adjudicating Authority by DGRI

Date: 24-11-2017
Notification No. 17/2017-Customs (N.T./CAA/DRI)
Appointment of Common Adjudicating Authority by DGRI

Date: 24-11-2017
Notification No. 16/2017-Customs (N.T./CAA/DRI)
Appointment of Common Adjudicating Authority by DGRI

Date: 24-11-2017
Notification No. 15/2017-Customs (N.T./CAA/DRI)
Appointment of Common Adjudicating Authority by DGRI



Exim Guru Copyright © 1999-2017 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001