India's population is growing at an annual rate of 0.9% now and so we can safely assume , our consumption to that extent will automatically grow. There is no dearth of consumption and all FMCG and industries dependant on primary consumption commodities need not worry. Only in consumption dependant on discretionary income or disposable income will suffer in the immediate short term.
The lifestyle goods' consumption will suffer in the medium term. But in the long term it will be back as economy bounces back as it will certainly.
But we cannot just rely on the inherent strength of the economy. The Govt is expected to do its part and that too in large measure. in terms of fiscal steps. What the govt has done so far is to keep the economy alive.The Govts both Central and State Govts should be willing to forego atleast one quarter of their earnings to revive the economy, leave alone kick starting it.
If they forego one quarter earnings ,they can convert it into 1/4th of GST rates which they need to reduce straightaway.So, if the GST rate on Auto sector is 28% make it 21% straightaway. Simple and easy for Govts and people to understand.
Similarly in IT, the personal IT to be slashed by 1/4 th of the rates.
Govts can restore the original rates from next FY 21-22.
All Govt Depts including Power Discoms, NHAI etc. should pay off their liabilities, if not 100% at least 90% and hold 10% or take BG.
Govts on their part should look at indexing their user charges to inflation from next year onwards.All EB Tariffs,Royalties etc to be similarly inflation indexed. Zero rating is anathema to increasing Tax GDP ratio. Except primary produce from land all else should bear atleast 1% GST on anything that is packed and sold.
The lifestyle goods' consumption will suffer in the medium term. But in the long term it will be back as economy bounces back as it will certainly.
But we cannot just rely on the inherent strength of the economy. The Govt is expected to do its part and that too in large measure. in terms of fiscal steps. What the govt has done so far is to keep the economy alive.The Govts both Central and State Govts should be willing to forego atleast one quarter of their earnings to revive the economy, leave alone kick starting it.
If they forego one quarter earnings ,they can convert it into 1/4th of GST rates which they need to reduce straightaway.So, if the GST rate on Auto sector is 28% make it 21% straightaway. Simple and easy for Govts and people to understand.
Similarly in IT, the personal IT to be slashed by 1/4 th of the rates.
Govts can restore the original rates from next FY 21-22.
All Govt Depts including Power Discoms, NHAI etc. should pay off their liabilities, if not 100% at least 90% and hold 10% or take BG.
Govts on their part should look at indexing their user charges to inflation from next year onwards.All EB Tariffs,Royalties etc to be similarly inflation indexed. Zero rating is anathema to increasing Tax GDP ratio. Except primary produce from land all else should bear atleast 1% GST on anything that is packed and sold.
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