Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: empanelment :: cpt :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
 
 
« General »
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall

GDP forecast not in sync with tax collection, credit growth'
February, 11th 2015

Raising questions about the new methodology pushing up the GDP forecast to 7.4 per cent for the current fiscal, economists have said it is not in sync with key parameters such as tax collections and credit growth.

"The (GDP) data released yesterday has only added to the confusion that already exists," said a report by HDFC Bank.

Based on the new series, the Central Statistics Office yesterday projected an economic growth rate of 7.4 per cent for 2014-15, up from 6.9 per cent a year ago.

These projections have made India the fastest growing economy in the world, but have not gone down well with economists who find discrepancy in the data, based on which the government has projected higher GDP growth.

Credit rating agency Crisil observed in its report that some "high frequency indicators go out of whack" as credit growth and service tax collections are not in tune with the CSO's growth projections.

A report prepared by ING Vysya Bank said: "The high growth figures do not corroborate with the developments on the ground. The divergences between the high frequency data and GDP growth under the new methodology are blatantly stark.

"Muted corporate performances, worsening asset quality of the banks, weak auto sales and overall industrial production along with non-oil non-gold imports all have been pointing towards a sluggish recovery."

Icrier economist Abheek Barua said: "All the economists have been grappling to interpret the data. So far it is seen in conjunction with the multiple indicators seen on the ground. I think, slowly we will get used to this new method of data."

Aided by 7.5 per cent expansion during October-December, the Indian economy will see the fastest pace of growth since 2010-11, when it had achieved a growth rate of 8.7 per cent.

The higher GDP growth forecast for the current fiscal has been estimated after the government revised the base year for computation to 2011-12 from 2004-05.

According to the Crisil report, "Credit growth does not sync with the sharp pick-up in GDP growth now shown for this fiscal. Credit growth is expected to potter around at 12-14 per cent compared with 14.3 per cent as of fiscal 2014-end."

Similarly, it said the growth in service tax collections slowed 10.2 per cent in the year so far (April to December), compared to 19.2 per cent in the same period of fiscal 2014.

Last month, the Statistics Ministry had pegged the previous year's growth at 6.9 per cent as against 4.7 per cent estimated previously, a revision which led to some economists including RBI Governor Raghuram Rajan seeking more clarity on the data.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions