Skip to main content

PM pushes states to boost GST collection at NITI governing council meet

 Prime Minister Narendra Modi said on Sunday that states should develop a clear time-bound road map for the implementation of the National Education Policy (NEP) and focus on promoting trade, tourism and technology. He also asked for collective action to increase Goods and Services Tax (GST) collections. During the 7th meeting of the NITI Aayog Governing Council, states, on the other hand, sought central assistance to help crop diversification. This was the first in-person NITI Aayog Governing Council meeting since 2019 and the PM interacted with chief ministers of states and lieutenant governors of Union Territories. “The PM said the NEP has been formulated after considerable deliberations. He said we should involve all stakeholders in its implementation and develop a clear, time-bound roadmap for the same,” said an official statement. Speaking at a media briefing after the meeting, NITI Aayog member V K Paul said there was a strong consensus among states on the implementation of the NEP. “The prime minister said that NEP needs to be monitored every month by the relevant departments in the Centre and states,” Paul said. The PM underlined the need for collective action to increase the GST mop-up, saying though the realisation has improved, “the potential is much more... and it is crucial for strengthening our economic position and becoming a $5-trillion economy”.

 

The collection of GST has remained above Rs 1.4 trillion for the fifth month in a row. It increased 28 per cent year-on-year to nearly Rs 1.49 trillion in July -- the second-highest mop-up since the rollout of the regime. In his closing remarks, Modi said that each state should focus on promoting its own trade, tourism, and technology through every Indian Mission around the world. He said states must focus on reducing imports, increasing exports, and identifying opportunities for the same in every state. The meeting was attended by 23 CMs, 3 LGs, and 2 administrators, besides Union ministers. The key agenda included crop diversification and achieving self-sufficiency in pulses, oilseeds, and other agri-commodities, the implementation of the NEP, and urban governance.

 

NITI Aayog Vice-Chairman Suman Bery said crop diversification was the most extensively discussed topic at the meeting. The PM reminded states that India was importing edible oil worth Rs 1 trillion annually, and that dependency needed to come down, said agriculture expert and Aayog Member Ramesh Chand at the media briefing. Chand said states presented their own roadmap for crop diversification via incentivising farmers to shift to pulses and oilseeds, and highlighted their achievement in raising the production of these crops. “Most states asked for central help for quicker diversification towards oilseeds and pulses, and also wanted higher minimum support price for both,” he said. At the governing council meeting, External Affairs Minister S Jaishankar gave a presentation on India’s Presidency of G20, and how states can take advantage of India hosting the summit. “The G20 Presidency presents a great opportunity and great responsibility. For the first time in the history of G20, India will host G20 meetings over a year, not only in Delhi, but in every state and Union Territory,” he said. Modi said that there should be a dedicated team for G20 in states to derive the maximum possible benefit from this initiative. This in-person meeting of the governing council came after a two-year break due to the Covid-19 pandemic. It also came against the backdrop of some persisting issues between the Centre and states, especially in health care, management of the pandemic, sharing of revenue resources, and inflation control. Modi said that every state played a crucial role according to its strength and contributed to India’s fight against Covid. “NITI Aayog will intensify its efforts to act as an honest broker between the Centre and states on various outstanding issues,” said its CEO Parameshwar Iyer at the media briefing.

 

 

 

-Business Standard, 8th August 2022

Comments

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm

Credit card spending growth declines on RBI gaze, stress build-up

  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and