Budget 2020-21: Highlighting the positive impact of GST, an average household currently saves 4 per cent on monthly spending on account of the GST savings, Finance Minister Nirmala Sitharaman said on Saturday.
Budget 2020 India: Highlighting the positive impact of GST, an average household currently saves 4 per cent on monthly spending on account of the GST savings, Finance Minister Nirmala Sitharaman said on Saturday. Nirmala Sitharaman’s second Union Budget 2020-21 speech is currently underway in Lok Sabha. Adding, she said that the GST has integrated the country economically and the truck and logistics turnaround has seen a 20 per cent reduction due to GST and abolition of check posts. The government is in the process to introduce a simplified GST filing system from April 2020, Nirmala Sitharaman also said. Even as the maturing of GST faced many challenges in its transition, it has been successful in adding 60 lakh new tax payers, she added. 40 crore returns and 800 crore invoices have been issued so far, Nirmala Sitharaman added.
Nirmala Sitharaman in her budget speech last year had cut the GST collection projection for the Financial Year 2019-20. Nirmala Sitharaman had reduced the GST collection expectations by 13 per cent from the interim budget presented by Piyush Goyal in absence of the then Finance Minister Arun Jaitley. Goyal had projected GST collection for the Financial Year 2019-20 at Rs 7.6 trillion whereas Nirmala Sitharaman cut it down to 6.3 trillion.
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The GST collection was estimated lower by the Finance Minister despite healthy collections of GST in the first three months of the FY 2019-20, leading up to the union budget in July 2019. The GST collection for the months of September and October went through a negative phase. The GST collection for September 2019 stood at Rs 91,916, much less than the collection during the same period of the last Fiscal Year 2018-19. The GST collection for October 2019 was Rs 95,380, way down from 1,00,710 collected in October 2018.
Meanwhile, the Economic Survey on Friday projected revival of economic growth to 6-6.5 per cent next fiscal and suggested that the government should relax the budget deficit target to boost growth from a decade low of 5 per cent this year. Facing the worst economic slowdown since the global financial crisis of 2008-09 that worsened job prospects, the Survey said businessmen should be respected as they create wealth and jobs.