IMF estimates India can overtake China on economic reform front

IMF estimates India can overtake China on economic reform front

Washington: International Monetary Fund (IMF) chief economist Geeta Gopinath has said that there are signs that economic activities are beginning to normalize in India. It is noteworthy that the Monetary Fund has estimated Mangwar's economic growth in India to be a spectacular 12.5 percent in the current financial year. This rate will also be higher than China. China was the only major economy that has shown growth in 2020. 

Before the summer annual meetings of the Monetary Fund and the World Bank, Geeta Gopinath said about India, "The evidence we have been getting for the last two months shows that economic activities are normalizing." The Monetary Fund in its report titled World Economic Outlook (Global Economic Outlook) has stated that India's economic growth will be 6.9 percent in the next financial year (2022-23). 

The Indian economy is projected to have a record contraction of 8 percent in 2020-21, affected by the Kovid 19 epidemic. In response to a question, Gopinath said, "In respect of India, we have made a very mild amendment which is one percent for 2021-22. In the current financial year before the Mudra Kosh, India's GDP was projected to grow by 11.5 percent compared to 2020-21.  


'Government will decide to cut excise duty on petrol and diesel when the time comes'

'Government will decide to cut excise duty on petrol and diesel when the time comes'

Business Desk: Central Board of Indirect Taxes and Customs (CBIC) Chairman M Ajit Kumar said on Tuesday that the government would consider reducing petrol and diesel prices by cutting taxes when the appropriate time comes. The indirect tax collection from record excise duty on petrol and diesel was up 59 percent year-on-year in the financial year 2020-21, ending March 31. 

In a video call with reporters to give information about tax figures, he said, "We hope that the revenue will be good in the coming months." "As far as fuel price cuts are concerned," Kumar said , The Government is constantly on the lookout on this matter and I am confident that a decision will be taken whenever the time comes. Is considering a cut. However, he did not elaborate on the appropriate timing. 

The price of petrol and diesel was
raised by the government by Rs 13 per liter on petrol last year, while on diesel by Rs 16 per liter. The excise duty on petrol is now Rs 32.90 per liter. The petrol rate in Delhi is Rs 90.56 per liter and excise duty is 36 percent. Excise duty on diesel is Rs 31.80 per liter and excise duty is 39 per cent of its retail selling price of Rs 80.87 per liter. 

Adding VAT (value added tax) of states constitutes 55 to 60 per cent of the total tax in retail prices of these fuels. Petrol prices reached Rs 100 a liter in February in some parts of the country, Rajasthan, Maharashtra and Madhya Pradesh, amid the rise in the price of crude oil in the international market. Although assembly elections were announced in five states, including West Bengal, Tamil Nadu and Kerala, the price hike was put on hold. CBIC member (budget) Vivek Johri said one of the reasons for the 59.2 percent increase in excise collection is the increase in the petroleum tax rate. "If there is a deduction, the revenue collection will be affected by the excise duty," he said. 

Tax collection on oil reached Rs 2.94 lakh crore
Last month, Petroleum Minister Dharmendra Pradhan said in Parliament that tax collection on petrol and diesel was Rs 52,537 crore in 2013, which increased to Rs 2.13 lakh crore in 2019-20. At the same time, it increased to Rs 2.94 lakh crore in the first 11 months of 2020-21. CBIC did not separately provide data on excise collection on petrol and diesel in 2020-21.