Still, the economy is far away from meeting the pre-covid platform, but the finance minister is very well known about the compliance and the rise in the scrutiny which will assist in revenue collection in the next result.
Ajay Bhushan Pandey the Finance Secretary said to TNIE that the collection will rise up through the improvement in compliance.
“We have seen this in GST collection, which hovered around Rs 95,000 crore before taking a leap last month to Rs 1,20,000 riding on the back of better compliance”, he said, adding: “We are working on data analytics to launch targeted action against outliers. We see the momentum of revenue collection to improve in future,” Pandey commented.
He knows that there will be a pause in the GST compensation in the further fiscal year indeed, he then said that it will be too diminished with respect to the present year.
“The GST numbers are estimated after taking the Covid pandemic into account. However, a decision will be taken later on how to compensate states for FY22 shortfall as the borrowing mechanism offered to states in lieu of compensation is only for FY21 shortfall,” he added.
The FM last year will permit the states to meet the GST compensation gap of Rs 1.1 lakh cr through the aside borrowing window.
The budget 2021-22 has fixed the center’s revenue from GST with Rs 6,30,000 crore, a 22% growth upon the updated evaluation for FY21 at Rs 5,15,100 crore.
It is less than the FY21 budget evaluated of Rs 6,90,500 cr according to the experts.
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“I do not subscribe to speculations that revenue numbers are understated. We have shown a growth of 16.7 percent. It is an estimate after taking into account the nominal growth rate, which has been projected somewhere between 14 to 15 per cent and on that we have put this tax buoyancy of 1.15 percent. That’s how we reached the figure of 16.7 per cent” Pandey added.
Towards the circumstances of the status of personal income tax, the finance secretary commented that the council is working on the stability of the tax. As per them tinkering the rate every time budget is commented is not the right method to note that.
Pandey told “Stability of rates is very necessary whether it is a corporate tax rate or whether it is a personal income tax or whether it is a GST or whether it is a custom duty. I am of the view that the budget is a much bigger statement than merely the adjustment in the tax rate.”
