PM Modi, FM Nirmala Sitharaman To Review Weakening Economy
The economic condition of the country which was already under recession is sinking further during the coronavirus period. Employment opportunities are limited, industries are shrinking and the government is constantly lagging behind on its tax collection targets. Considering the seriousness of the situation, now the Prime Minister's office will soon brief senior officials of the Finance Ministry. RBI data shows that there has been a huge decline in direct tax and GST collections in the first quarter of this financial year.
If we talk about GST, then the government has suffered a big loss, in the month of April, there was a decrease of 71.6 percent to a total of Rs 32,294 crore. This collection was Rs 1,13,865 crore in April last year. If we talk about May, then GST collection was Rs 62,009 crore which was Rs 1,00,289 crore last year and it has seen a decline of 38 percent. The same figure was Rs 90,917 crore in June, a decline of 9 percent compared to Rs 99,939 in the previous year.
In the first quarter of FY 2020 - 21, there was a huge decline of 76.05 percent in the total advance collection and came to Rs 11,714 crore. In the first quarter of the financial year 2019-20, this figure was Rs 48,917 crore. In the budget 2020-21, tax collection was estimated to increase by 12 percent to Rs 24.23 lakh crore. The tax collection was Rs 21.63 lakh crore in the financial year 2019-20.
Income tax and corporate tax were going up rapidly in the year 2016 but by the year 2020, it is registering negative growth. Last year, when the central government was surrounded by the weakening of the economy, Finance Minister Nirmala Sitharaman announced a concession in corporate tax. With the motive to encourage investment, but on one hand, the government's income fell due to exemption in corporate tax, on the other hand, the investors were not excited and did not invest money in the market.
The fiscal deficit has also increased to 4.6 percent in the year 2019-20. At the same time, the financial year 2020-21 started at a time when the country was in lockdown and there is an epidemic across the country. In such a situation, the industries’ back has been broken, and running a business is proving out to be a costly affair.