New Delhi, Sep 5
The net revenue shortfall from GST rationalisation is estimated at 0.1 per cent of GDP for this fiscal year, to be cushioned by the higher RBI dividend transfer, a report said on Friday, adding that the GST rationalisation is a timely and positive step to support economic momentum, particularly amid persistent external headwinds.
“A sustained recovery in private consumption will be critical — not only for reviving the private capex cycle in a meaningful way but also for supporting export-oriented sectors that risk losing market share amidst ongoing trade tensions,” the report mentioned.
The government estimates an annual shortfall of Rs 48,000 crore on account of the GST rationalisation.
On the expenditure front, the government has front-loaded capex, already meeting 31 per cent of its annual budgeted target compared to 23.5 per cent in the corresponding period of the previous year.