Last updated: February 02, 2023, 9:12 PM IST
Nageswaran said states are absorbing 80% of interest-free loans based on revised estimates. (Photo: Nieuws18)
The CEA said the government is aware there needs to be Good & Services Tax (GST) 2.0 and stressed that the average GST collected per month is steadily increasing
Chief economic adviser V Anantha Nageswaran said on Thursday that almost all of the risks to India’s growth scenario come from external factors, pointing out that slowing global growth is exactly what India needs to boost its economic growth.
In an interview with CNBC TV18the CEA said the government is aware of the need for a Good & Services Tax (GST) 2.0 and stressed that the average GST collected per month is steadily increasing.
“Slowing global growth is what a doctor would recommend for India. Nearly 100% risk to our growth scenario comes from external factors. The whole tightening of monetary policy and the movement of the dollar will have an impact on us. At the moment, external factors will determine or influence our figures. we are competitive when it comes to ensuring supply chain resilience,” he said.
Nageswaran said states are absorbing 80% of interest-free loans based on revised estimates. “The combined budget deficit of the states is about 2.2%. States are doing their part. Some states are spending much more in the capital compared to Center, generally states are recovering,” he added.
Finance Minister Nirmala Sitharaman presented the 2023 budget, announcing a major relief for the taxpayer and a huge boost to capital spending and infrastructure.
Welfare expenditures will rise, including providing running water to all households and health insurance for the poor, and the finance minister expanded a scheme whereby free food grains were distributed to around 80 crore underprivileged Indians.
“Our vision for the ‘Amrit Kaal’ includes a technology-driven and knowledge-based economy, with strong public finances and a robust financial sector. To achieve this ‘jan-bhaagidari’ (public participation) through ‘sabka saath, sabka Prayaas’ (everyone’s efforts) is essential,” Sitharaman said in her speech.
Sitharaman listed seven priorities — Saptarishi — of the 2023 Union budget: inclusive development, reaching the last mile, youth power, financial sector, green growth, potential and unleashing infrastructure and investment.
The budget made a long-awaited mega-announcement about raising the income level to where no income tax is due: Rs 7 lakh per annum from fiscal year 2023-24. It was Rs 5 lakh till now. But there is a caveat: this change is only for those who opt for the New Tax Regime.
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