Last updated: February 02, 2023 9:12 PM IST
Nageswaran said states are absorbing 80% of interest-free loans based on revised estimates. (Photo: News18)
The CEA said the government knows there should be a Goods and Services Tax (GST) 2.0 and stressed that the average GST collected per month is steadily rising.
Chief Economic Adviser V. Ananta Nageswaran said on Thursday that almost all of the risks to India’s growth scenario come from external factors, and noted that slowing global growth is exactly what India needs to boost economic growth.
In an interview with CNBC-TV18, the CEA stated that the government is aware that there should be a Goods and Services Tax (GST) 2.0 and emphasized that the average GST collected per month is steadily increasing.
“A slowdown in global growth is what the doctor would have ordered for India. Nearly 100% risk to our growth scenario comes from external factors. All the tightening of monetary policy and the movement of the dollar will have an impact on us. At this time, external factors will shape or influence our numbers. we are competitive in terms of supply chain sustainability,” he said.
Nageswaran said states are absorbing 80% of interest-free loans based on revised estimates. “The combined state budget deficit is about 2.2%. The states are doing their part. Some states are spending much more on the capital than in the Center, in general, the states are recovering, ”he added.
Finance Minister Nirmala Sitharaman unveiled the 2023 budget and announced big relief for taxpayers and a big push for capital spending and infrastructure.
Welfare spending will rise, including providing all households with running water and health insurance for the poor, and the finance minister has expanded a free food grain scheme to some 80 crores of low-income Indians.
“Our vision for Amrit Kaal includes a technology and knowledge-based economy with strong public finances and a robust financial sector. To achieve this, “jan-bhagidari” (community participation) through “sabka sat, sabka prayas” (universal effort) is necessary,” Sitharaman said in her speech.
Sitharaman listed seven priorities – Saptarishi – of the union budget for 2023: inclusive development, reaching the last mile, youth power, financial sector, green growth, unlocking potential, infrastructure and investment.
The Budget has made a long-awaited mega-announcement to increase the income level to which income tax is not paid: 7 lakhs per year from fiscal year 2023-24. So far it has been 5 million rupees. But there is a caveat: this change only applies to those who choose the New Tax Regime.
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