• 3 months ago
With the festival season approaching, the GST collection in India will pick up further. Meanwhile, the UPI growth has been robust in August at Rs 20.61 lakh crore and this growth has been consistent for the past 4 months or so, says Dr Manoranjan Sharma, Chief Economist, Infomerics Ratings

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00:00Well, I think there has been some concerns on the kind of GST collections we have seen in August
00:062024. Because if you place things in a proper historical and comparative perspective,
00:12we find that in August 2023, the figures were of the order of rupees 1,59,000 odd crores.
00:20In July 2024, they were at 1,65,000 odd crores. So that means the pace of growth has not been
00:28maintained. But my submission is that these things need to be placed in a proper perspective.
00:34The kind of leakages, this has come on a very high base. And so there is considerable tax
00:39buoyancy. There's nothing to worry. The festival season is shortly approaching. October, November
00:45is supposed to. So I expect the GST collections will pick up further. But even otherwise,
00:51the basic point which I wish to drive is the fact that once you reach a high base,
00:56it's difficult to maintain a consistently high rate of growth in tax collections.
01:02Well, yes, these are again very impressive figures. If you look at the latest August
01:07figures which I have referred to, the transactions were 14.96 billion,
01:12involving a sum of rupees 20.61 lakh crores. In other words, this translates into a year-on-year
01:20growth of 31%. And what is more important is that these figures are not something like
01:27one of measures. If you look at the trend growth rate in the last four months, we find that these
01:33figures have consistently exceeded 20 lakh crores in the last four months. Going ahead, we see the
01:43transactions reaching 100 billion in the next 10 to 15 years. And this assumes particular importance
01:50in view of the fact that apart from national agencies, the international agencies, multilateral
01:56institutions like the IMF have brought into focus that digitalization-induced profitability gains
02:03has provided significant efficiency and productivity booster to the Indian economy.

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