Topic Of The Day:-“Gst Shortfall”
As The Tax Collections Remain Below Target, It May Be Time To Recalibrate Expectations
Revenue collections from the Goods and Services Tax (GST) are going too far off the mark for comfort. Inflows declined for the second consecutive month in December to ₹94,726 crore from ₹97,637 crore in November and ₹1,00,710 crore in the month before. Between April and December, GST collections have averaged about ₹96,800 crore, and have not even once met the monthly target of ₹1,06,300 crore, going by the Union Budget math for 2018-19. Now in order to achieve the year-end target, GST collections over the next three months will have to reach an average of ₹1,34,900 crore. But given the spate of tax rate cuts announced by the GST Council in December that kick in this month and Prime Minister Narendra Modi hinting at further rationalisation of rates for construction materials soon, the pressure on revenues is likely topersist. Separately, as the government looks to woo traders and small businesses back to its electoral fold, the Council is considering a relaxation in the GST norms for micro, small and medium enterprises by raising the annual sales threshold for compulsory GST registration from ₹20 lakh to over ₹50 lakh. Such a relaxation, along with regulatory steps like greater forbearancefor small business loans, will boost sentiment among such firms, but it will further dent the tax kitty. Other revenue heads, including direct tax or disinvestment receipts (even via innovatively structured intra-public-sector deals), are unlikely to be adequate to plug the GST shortfall.This poses a challenge for the Centre at a time when it would have been hoping to announce some populist measures ahead of elections, while retaining its macro-economic management credentials. States’ revenue collections under the GST regime have been uneven and a GST Council panel is examining inter-State variations. But the Centre is bound to compensate States for revenue shortfalls for the first five years of the GST regime. Unless the Centre decides to drop its fiscal deficit goals, a squeeze on spending, including planned capital expenditure, may be the only option. There is a more problematic aspect to the dip in GST collections, based on economic activity and compliance trends in November. The total number of returns filed that month hit a high of 72 lakh from 55 lakh at the beginning of the fiscal, yet revenues fell. November also marked the onset of India’s festive season, with a late Deepavali. Yet, the higher compliance and the festivefervour translated into collections lower than the average monthly receipts for the year till date. Though India’s growth fell to 7.1% in the second quarter of this fiscal, an uptick in private investment over the same period was considered a sign of revival. But if consumers are not confident enough to spend, a consumption-led investment revival to take the economy to an 8% growth path seems elusive again.
MEANINGS ANS WORDS
1) declined
Meaning : (typically of something regarded as good) become smaller, fewer, or less; decrease.
Synonyms : deny
Antonyms : accept
Example : “the birth rate continued to decline”
2) consecutive
Meaning : following each other continuously.
Synonyms : ensuing
Antonyms : broken
Example : “five consecutive months of serious decline”
3) spate
Meaning : a large number of similar things coming in quick succession(n).
Synonyms : deluge
Antonyms : dribble
Example : “a spate of attacks on holidaymakers”
4) hinting
Meaning : suggest or indicate something indirectly or covertly(v).
Synonyms : advise
Antonyms : conceal
Example : “the Minister hinted at a possible change of heart”
5) persist
Meaning : continue in an opinion or course of action in spite of difficulty or opposition(v).
Synonyms : continue
Antonyms : cease
Example : “the minority of drivers who persist in drinking”
6) desist
Meaning : stop doing something; cease or abstain(v).
Synonyms : abstain
Antonyms : persist
Example : “each pledged to desist from acts of sabotage”
7) forbearance
Meaning : patient self-control; restraint and tolerance(n).
Synonyms : fortitude
Antonyms : agitation
Example : “his unfailing courtesy and forbearance under great provocation”
8) dent
Meaning : a slight hollow in a hard even surface made by a blow or pressure(n).
Synonyms : indentation
Antonyms : increase
Example : “there was a hideous dent in the front passenger door”
9) poses
Meaning : present or constitute (a problem or danger)(v).
Synonyms : posture
Antonyms : honesty
Example : “the sheer number of visitors is posing a threat to the area”
10) retaining
Meaning : continue to have (something); keep possession of(v).
Synonyms : arresting
Antonyms : releasing
Example : “Labour retained the seat”
11) regime
Meaning : a government, especially an authoritarian one.(n)
Synonyms : reign
Antonyms : disorder
Example : “ideological opponents of the regime”
12) aspect
Meaning : a particular part or feature of something(n).
Synonyms : reign
Antonyms : deface
Example : “personal effectiveness in all aspects of life”
13) dip
Meaning : put or let something down quickly or briefly in or into (liquid)(v).
Synonyms : plunge
Antonyms : aspire
Example : “he dipped a brush in the paint”
14) implications
Meaning : the conclusion that can be drawn from something although it is not explicitly stated(n)
Synonyms : meanings
Example : “the implication is that no one person at the bank is responsible”
15) translated
Meaning : express the sense of (words or text) in another language(v).
Synonyms : converted
Antonyms : stagnated
Example : “several of his books were translated into English”
16) revival
Meaning : an improvement in the condition, strength, or fortunes of someone or something(n).
Synonyms : restoration
Antonyms : suppression
Example : “a revival in the fortunes of the party”
17) elusive
Meaning : difficult to find, catch, or achieve(adj).
Tamil Meaning :
Synonyms : recovery
Antonyms : suicide
Example : “success will become ever more elusive”
