One can argue that data is the nectar that policymakers must drink and digest to make good policy. The recent magisterial study by Arvind Subramanian and his team has brought out the veracity of this assertion on the seventh anniversary of the introduction of the goods and services tax (GST).
One of the findings is that GST revenue performance has been overstated because of considering gross revenues instead of net revenues, given the significant proportion of integrated GST (IGST) refunds paid to exporters (0.7 per cent to 0.8 per cent of gross domestic product, or GDP). Therefore, the GST-toGDP ratio reached the pre-GST level of 6.1 per cent only in 2023-24. This is a sobering truth. If this had been known earlier, perhaps the GST rate reduction exercise in 2017-2018 and 2018-2019 would have been more tempered, with rate cuts balanced by increases in certain items to maintain revenue neutrality.
The study results bring out one important fact: We have not utilised the rich vein of GST data. It is time now to open this up to all private research outfits and public finance groups in our universities. What are the important areas of research with implications for policymaking?
First, there is the important area of inter-state trade. When GST implementation was debated, it was claimed that by the abolition of entry tax and octroi, the so-called "border taxes", inter-state trade would increase. The Economist in a recent special report said that inter-state trade as a proportion of GDP rose from 23 per cent to 31 per cent between 2017 and 2021. We need to dive deep into this claim using IGST data and other proxy datasets. It is important to know whether the Indian market has expanded post-GST, and which states have gained.
この記事は Business Standard の July 09, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Business Standard の July 09, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Himalayan glacial lakes expanded 10.81% from 2011 to 2024: Govt
Glacial lakes and other water bodies across the Himalayan region saw a 10.81 per cent increase in area from 2011 to 2024 due to climate change, signalling a heightened risk of glacial lake outburst floods (GLOFs), according to a government report.
India rises as global player in petroleum, sugar exports
SURGING MARKET SHARE IN 5 YEARS
Bollywood's tall storey: Mega deals drive real estate boom
Bollywood's influence extends beyond films. The industry's top stars are known for their larger-than-life roles both on and off screen.
Festival spirit soars, so does pollution
Last Thursday, the skies of Delhi illuminated with Diwali celebrations, despite a ban on firecrackers.
Credit culture: What's that?
Many bankers are complaining about deteriorating credit culture. The villain is farm loan waivers. But some of the NBFCs too are contributing to it
PEELING THE KANDA EXPRESS
As trains loaded with onions chug along, what is the impact on farmers, consumers, and traders?
SROs and fintechs: The emerging plot
The Reserve Bank of India (RBI) recently recognised the Fintech Association for Consumer Empowerment (FACE) as a self-regulatory organisation for fintech (SRO-FT) and is in the process of examining two other applicants.
Amber lights flashing
The microfinance business is turning cautious as delinquencies inch up, reports RAGHU MOHAN
Have a heart condition? Go for specialised cardiac plan
Before purchase, check for waiting periods, co-payment requirements, and sub-limits
Breaking the silence on death and money
Rekha and Rahul, both in their early forties, were batchmates at the Indian Institute of Management (IIM). They married soon after graduating and enjoyed successful careers in Bengaluru.