No. PR – 136
October 26, 2021
PHD Chamber Appreciates The Improved Fiscals Scenario In The Country
While the growing tax revenues are likely to narrow down the fiscal deficit estimate of the Government for FY 2022 at 6.8%, the subsidies and other schemes of Government are likely to bloat it. Though the subsidies are weighing on the fiscal deficit, however, amid the global and domestic scenario where the prices of commodities, especially the fuel, are skyrocketing, the continuation of the subsidies by the Government becomes essential, said Mr Pradeep Multani, President PHD Chamber of Commerce and Industry.
Similarly, the extension of distribution of free food grains under the Pradhan Mantri Garib Kalyan Anna Yojana has been an appreciable and much needed move to support the poor during the difficult times caused by the pandemic COVID-19.
At this juncture, it is highly encouraging to note that the direct tax and indirect tax revenue collections (including GST) have been robust in the recent months and have registered significant year-on-year growth rates in the current financial year so far, thereby enhancing the revenues of the Government, added Mr Multani.
Going ahead, it is suggested that the more and more subsidies should be extended through the means of direct benefit transfers to bring in the efficiency. Along with this, there is a need to rationalise the direct tax rates to increase the tax compliance and further expand the tax base and collections. This will help in balancing the fiscal situation of the country, further added Mr Multani.
PHD Chamber of Commerce and Industry