INDIA not facing recession: GST collection of states rises to Rs 5.18 trillion in FY19: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said the Indian economy may have slowed down but there is no threat of recession. Replying to a discussion on the economic situation in the country in the Rajya Sabha on Wednesday, November 27, she quoted numbers comparison between five years under Congress-led UPA-II regime from 2009 to 2014 and BJP’s first term from 2014 to 2019 saying inflation was lower and growth higher under the Modi government.FDI inflows in 2009-14 were USD 189.5 billion and the same were USD 283.9 billion under BJP rule in the following five years. Foreign exchange reserves rose to USD 412.6 billion under BJP from USD 304.2 billion in UPA-II.”Economic growth may have slowed but there is no recession, there can be no recession,” she said. Through a written answer to a query in the Lok Sabha she said GST collection of states and union territories (UTs) increased to Rs 5.18 trillion in the full financial year 2018-19, up from Rs 2.91 trillion collected in nine months of 2017-18.The Centre has released Rs 81,177 crore compensation to states during 2018-19, as against Rs 48,178 crore during July-March period of 2017-18 fiscal. Concerted efforts have been made to improve tax compliance.”The GST collection of the states/UTs has been showing steady improvement over the period of time. They are also assured a growth of 14 per cent for a period of five years through payment of compensation by the central government,” she said.The total GST collection of the states/UTs for 2018-19 stood at Rs 5,18,447 crore against GST collection of Rs 2,91,100 crore in 2017-18, she added.”Extensive automation of business processes, application of e-way bill mechanism, targeted action on compliance verification, enforcement based on risk assessment and proposed introduction of electronic invoice system are the steps taken for increasing the revenue collection,” she said.FM Sitharaman also ought Parliament nod for additional spending of Rs 21,246.16 crore, including over Rs 8,820 crore for the newly formed union territories of Jammu and Kashmir and Ladakh, in the first batch of supplementary demands. Of this, the net cash outgo will be Rs 18,995.51 crore, she said in the statement tabled in the Lok Sabha ..She provided Rs 8,820.62 crore as grant to Union Territories of Jammu and Kashmir and Ladakh in lieu of J&K State share of 14th Finance Commission Award. As much as Rs 2,500 crore was provided for capital infusion in IDBI Bank Ltd through issuance of recapitalisation bonds. Another Rs 666 crore was provided for meeting expenditure of Department of Space and Rs 3,387.46 crore for meeting expenditure towards salaries and cost of ration of police.(with courtesy for image to The Hindu)

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