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Sep 1st, 2017 1:49 pm | By | Category: LATEST NEWS

Finance Minister Arun Jaitley said that he is ‘concerned’ about the 5.7% GDP growth recorded in the first quarter of 2017-18, indeed these numbers fly in the face of the govt which just few days back claimed record GST collections and a significant increase in the number of income tax payers. The Modi govt has set itself a target of Rs 9.26 lakh crs for indirect tax (Customs Rs 2.45 lk cr,Excise Rs4.06 lk crs, Service Rs2.75 lk cr) for the year 2017-18. While the govt says it will meet the targets the point is will the talk translate into money on the table ? The govt had set itself a growth target of around 7.6 % for 2017-18 and if the growth is anything less its collections too will take a significant beating.

Going ahead the concern for growth is from the ground ,monsoons which have been deficient in some places while flooding the dry areas, will this mean that the second quarter ending September show poor growth nos which will be based purely on farm performance ? Growth of farm and manufacturing are essential for the govt because it addresses two key issues – one, more money in the hands of rural consumer (which means huge sales in coming festive season yielding taxes for govt) ,two, more employment (which also means spending ability resulting in taxes) . For the Modi govt which aims at pan India presence and faces key state elections till 2019, growth will mean more money to throw at various schemes in last two years of governance; more credibility in Mr Modi’s speeches claiming development (which was his original electoral plank) ; more donations to the BJP’s treasury giving them the much needed muscle to fight the elections and win by huge margins(presently only 31% India voted for them) which has been their area of concern since 2014 elections. Hence the significance of growth nos and tax collections for those who want to cling on to power in India.

Will GST and low growth get BJP the votes coming election season ?

(Article By Bhagyashree Pande)

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