Correct Answer : Option (B) - increase in domestic prices
Correct Answer : Option (A) - ₹1.59 Trillion
In August 2023, India witnessed a notable surge in Goods and Services Tax (GST) collection, amounting to ₹1.59 trillion, signifying an 11% increase compared to the same period last year (2023). This impressive growth can be attributed to enhanced compliance and anti-evasion measures put in place.Comparison with Previous Months :* August 2023’s collection marked a significant rise from the ₹1.43 trillion collected in August 2022.* However, it’s important to note that GST collection moderated compared to the previous month, which recorded ₹1.65 trillion in July.Factors Behind the Moderation :* The moderation in collection is primarily attributed to subdued growth in integrated GST (IGST) and the cess on imports, which increased by only 3% in August.* Importantly, both imports and IGST collections have experienced fluctuations in recent months.
Government’s Expectations :* The government has set an ambitious target for the financial year, aiming for an average monthly GST collection between ₹1.6 trillion and ₹1.65 trillion.* Experts anticipate the growth momentum to continue, although certain inhibiting factors are not ruled out.Distribution of Tax Collection :* Following the settlement of taxes for inter-state sales, the Centre collected ₹65,909 crore, while the states garnered ₹67,202 crore in August.Year-on-Year Improvement :* In comparison to the same month in the previous year, August 2023’s GST revenues showed an impressive 11% increase.* Revenue from the import of goods increased by 3%, and revenue from domestic transactions (including import of services) grew by 14% compared to the same period last year, according to the finance ministry.Strong Performance in Major States :* Several major states reported robust growth rates in GST collection.* Maharashtra recorded a remarkable 23% increase at ₹23,282 crore, Karnataka’s collection surged by 16% to ₹11,116 crore, and Gujarat’s collection increased by 12% to ₹9,765 crore, as per official data.Source : Business Standard
Correct Answer : Option (C) - 6.7%
Global rating agency Moody's Investor Service on Friday (1st August 2023) raised India's economic growth forecast to 6.7% in 2023 from 5.5% pegged earlier. It has, however, slashed India's 2024 gross domestic product (GDP) growth forecast to 6.1% from 6.5% earlier since the second quarter outperformance has created a high base this year.Strong services expansion and capital expenditures propelled India's 7.8% real GDP growth in the second quarter from a year ago. We have accordingly raised our 2023 calendar year growth forecast for India from 5.5% to 6.7%," it said in a note.On lowering the 2024 growth forecast, Moody's said, "Since the second quarter outperformance creates a high base in 2023, we have lowered our 2024 growth forecast from 6.5% to 6.1%."Given the robust underlying economic momentum, the agency also recognises further upside risk to India’s economic growth performance.
India's monsoon season, which runs from June to October, could also see below-average rainfall, resulting in higher food prices, Moody's said. "So far, as of August 29, 2023, the India Meteorological Department has estimated a 9% rain deficiency across the country. If El Niño this year proves to be particularly strong in the second half of 2023 and early 2024, agricultural commodity prices could shoot up."The Reserve Bank of India’s monetary policy committee has left the repo rate unchanged for a third time this month. The recent uptick in food price inflation and uncertain El Niño-related weather conditions will delay monetary policy easing consideration to early next year, Moody's noted.The agency further said that domestic demand in India remains buoyant, and as long as core inflation remains relatively stable, rate hikes are also unlikely.Meanwhile, India's GDP for the first quarter (April-June) of the ongoing financial year accelerated to 7.8%, according to data released by the Ministry of Statistics and Programme Implementation on August 31.The GDP growth stood at 6.1% in the fourth quarter of the previous financial year..Source : CNBC