Sources indicated that as of now there is no proposal to reduce GST rate on essential items, even as it is ultimately GST Council which will take any decision on changing the tax rates and not just the central government.
This was the highest level of deficit for the Centre since FY13.
The downward spiral has been accentuated by the lockdown that was enforced since late March to tackle the spread of Covid-19 pandemic, with most economists projecting that the Indian economy will record a contraction in GDP this year, while any recovery is expected to be long drawn process.
If goods and services tax (GST) rates are increased on non-essential items, sources said it will further bring down their demand and impede the overall economic recovery.
Gross Domestic Product (GDP) 4th Quarter Data: The growth in GDP during 2019-20 is estimated at 4.2 per cent, slowing to an 11-year low, as compared to 6.1 per cent in 2018-19.
Singapore emerged as the largest source of FDI in India during the last fiscal with USD 14.67 billion investments.
"We have lowered our growth forecast for fiscal year ending March 2021 to a 5 per cent contraction... We currently assume that the outbreak peaks by the third quarter," S&P said in a statement.
Chief Economic Adviser Krishnamurthy Subramanian said it is difficult to make a reliable estimate on growth given the kind of uncertainty resulting from effects of COVID-19 pandemic.
According to the SBI’s research report ‘Ecowrap’, gross domestic product (GDP) growth is likely to be 4.2 per cent for the full year of FY20.
According to the SBI's research report - Ecowrap - the gross domestic product (GDP) growth is likely to be 4.2 per cent for FY20 and (-) 6.8 per cent for FY21.
In an e-Adda hosted by The Indian Express, Nitin Gadkari, Union Minister of Road, Transport & Highways and MSME, spoke on clearance of dues to MSMEs, how to get demand back in the market and restarting industry.
A blanket suspension of labour laws, as has been in the case of UP, however, may not find favour, with the Centre leaning towards putting caveats in order to protect the rights of bonded labour, children and women.
The government has already announced a Rs 20.97 lakh crore economic package, which includes Reserve Bank's Rs 8.01 lakh crore worth of liquidity measures till May 17.
In order to push credit into the economy, the government has also clarified to bankers that no action will be taken against them for commercial decisions gone wrong.
In the survey, most respondents said that they would gravitate towards familiar products in a post-COVID-19 world; about 66 per cent would hold on to money rather than going ahead with their plan to buy new items.
The amount includes corporate tax refunds of Rs 11,610 crore to over one lakh taxpayers and Rs 14,632 crore to 15.8 lakh assessees from other categories, including salaried individuals.
Food inflation — which had eased in February and March — had “suddenly reversed” and surged 8.6 per cent in April “as supply disruptions took their toll immune to the ongoing demand compression”, said Shaktikant Das.
Under the existing guidelines on the Large Exposures Framework, the exposure of a bank to a group of connected counterparties should not be higher than 25 per cent of the lender’s eligible capital base at all times.
By hiking the fiscal deficit limits for states, the Centre has enabled them to support their expenditure, even as linking of additional borrowing with reforms will help in medium-term debt management, the Commission’s Chairman N K Singh said.
While almost all major economies are shrinking as a result of coronavirus, only three countries China, India, and Indonesia are projected to experience small, but positive rates of economic growth.