The bad economic condition of the central government is a big trouble for India

The position of the central government in India is becoming increasingly weak financially. Which remains a concern for India. Looking at the last few quarters, the GST collection has been steadily decreasing. However recently the report had come that, before the GST counseling meeting, the central government released GST of Rs 135000 crores to the states despite the decrease in GST collection.

Let us tell you for information that GST was implemented in India by changing the entire tax system. When GST was introduced in the country, it was said that this would lead to rapid economic progress in the country. But now it does not seem to be happening.

Payment to states made despite GST collection decreasing

Narendra Modi
Narendra Modi

Finance Minister Nirmala Sitharaman has also expressed concern over the ever-decreasing collection of GST. Recently a news was published in Jansatta. According to which the Finance Minister Nirmala Sitharaman had made the state governments aware of the declining GST collection.

Finance Minister Nirmala Sitharaman has said that the collection of GST is continuously decreasing. Despite this, full payment has been made to the state governments.

Finance Minister Nirmala Sitharaman has said that the GST cess has earned only Rs 95000 crore to the central government. While the payment of about Rs 135000 crores has been made to the states due to GST compensation.

The money received by the state governments in the form of GST was stuck for a long time. And the central government was not paying it to the states.

The case was stuck since December last year. The central government says that this problem has arisen due to decreasing GST collections, although the same problem was faced by the Center and the states in August-September. And then there was not even corona virus.

Let us tell you for information that the Central Government has been consistently blaming the Corona virus for reducing the GST collection.

India’s falling growth rate is a matter of concern for the government

There was a time when outside was the fastest growing economy in the world. But now there has been such a slowdown that it is not taking the name of getting out of the recession. At one time, double digit growth was being talked about in India. But now India seems to be craving for growth above 5%.

Demonetization was implemented in India only when there was a possibility of double digit in India. And then GST was implemented. Due to this, India’s economy got stuck in a deep crisis. As India’s economy was about to come out of it. Then the corona virus knocked. And the economy of the whole world was affected. India was also not left untouched by this. In such a situation, another problem arose before the economy of India which was going through difficult times.

If we talk about the growth rate in the country, then this growth rate started from around 8%. After that the growth rate came down to 7% and then came down to above 5.3%.

Then the central government had said that now in the coming time the growth rate of the country will regain momentum. But this did not appear to happen. And the country’s growth rate fell to its lowest level of 3.1.

Experts are hoping that in the coming time, the country’s growth rate may decline even more. This may be due to the corona virus and the economic slowdown in the country.

GST collection is continuously decreasing

At this time, bad news is coming from all sides at the level of the economy in the country. The collection of declining GST also remains a concern for the central government.

According to a news published in Jansatta, this time the GST collection in the country has been only Rs 91000 crores. Which is the lowest level ever. If the experts are saying that in the coming time even more GST collections may fall.

It is not that this GST collection has come down at all. For the past few months, there has been a continuous decrease in GST collections. If we talk about the month of February, then the GST collection was around 98000 crores. After that the GST collection came down to ₹ 95000. And now this GST collection has further reduced to just ₹ 91000. Which is a concern for the central government.

However, the month of November last year saw an increase in GST collection. But this rise was due to imposition of cap limit on input credit tax. The central government had imposed a 20% limit on input credit. After this there was an increase in GST collection

Jobs in the country are continuously decreasing

It is not that only the GST collection remains a matter of concern for the central government. Rather, the unemployment rate in the country has also emerged as a new problem for the central government.

According to a report recently published in the BBC, at present the unemployment rate in the country has increased to around 9%. Which is the highest in the last 70 years.

The problem has been compounded by the Corona virus. According to a report published in the BBC, during the Corona virus in the country, about 20 million people have lost their jobs. At the same time, according to the news published in NDTV, the jobs of 2 crore people are in crisis.

In such a situation, the problem of unemployment in India can be revealed in the form of coronavirus that is not soon given to the vaccine world. However, the central government has run several skill development programs to increase employment. But all these do not seem to be of any benefit.

Financial package did not work

To raise India’s economy by coronavirus, the central government announced an economic package of Rs.20000 million. It was then said that this economic package is about 10% of the economy. However, the economic package does not appear to be doing any work for the economy.

There were a lot of omissions in this economic package. One of which was that people were not given direct case benefits. Due to which the demand did not arise at a lower level in the economy. And this economic package went as a futile step.

It was seen in countries around the world that people were given direct case benefits. Due to which the economy was able to return to track again.

The central government’s economic condition is getting worse

Now the economic condition of the central government can be gauged from the fact that, recently in front of a central committee, the central government had said that, it does not have the money to give the share of GST to the states.

However, due to the fear of an uproar in GST counseling, the central government released 135,000 crore rupees to the state governments. In such a situation, it will be interesting to see what other steps the central government is able to take to uplift the economy?

RBI may reduce interest rates

Recently, Reserve Bank of India Governor Shashikant Das had said that the Reserve Bank has more weapons to uplift the Indian economy. Which can be used when needed. At the same time, Shashikant Das also said that in the coming times, the Reserve Bank of India may impose a further cut in interest rates.

At the same time, the Reserve Bank of India, while advising banks, said that excessive caution can harm banks. The Reserve Bank has been consistently asking that banks provide loans to the needy. However, due to continuous NPAs, people are avoiding giving bank loans.

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