Economic Survey warns Centre, states’ fiscal health depends on GST mop-up
NEW DELHI: Growth in Goods and Services Tax (GST) collections holds the key to the fiscal health of the Union and state governments in the future, the Economic Survey for fiscal 2019-20 tabled in Parliament by Union finance minister Nirmala Sitharaman on Friday said, hinting that an overhaul to the tax system may be on the cards. The Survey warned that the next financial year posed several challenges for the government on the fiscal front amid an economic slowdown. “The financial year 2018-19 has ended with a shortfall in GST collections. Therefore, revenue buoyancy of GST will be key to improved resource position of both the central and state governments,” said the Survey. The Survey’s observation is indicative of the central government’s theory that overhauling the indirect tax system is essential to realise the full potential the new tax system holds for economic growth and revenue collections. Goods and services tax (GST) collections exceeded the ₹1 trillion mark for the secon