West Bengal Finance Minister Amit Mitra on Monday stated that the present slowdown within the financial system is because of “structural” adjustments and never “cyclical“.
He stated the structural adjustments have been ushered in as a consequence of demonetisation and “defective” GST implementation together with the collapse of IL&FS which crippled the NBFC sector.
“The slowdown in the economy is structural and not cyclical. This structural change has been brought about by demonetisation, hasty and faulty implementation of GST and the collapse of the IL&FS,” Mr. Mitra stated on the annual normal assembly of Bengal Chamber of Commerce & Business right here.
He stated that when the financial system was “coming up from the U-curve, the rising growth rate was hit by demonetisation which caused GDP growth to fall from 8.15% to 7.17%”.
“Another massive structural change came from the GST implementation,” he claimed.
Mr. Mitra stated that he had spoken to Items and Companies Tax Community (GSTN) Chairman who advised him that the nation “was not ready for its implementation on the scheduled date”.
“But a singular decision in the democracy was taken by the government and GST was implemented from July 1, 2017,” he stated.
Lastly, the collapse of IL&FS crippled the NBFC sector which is now going through large liquidity crunch, he added.
Concerning the direct tax assortment, he stated the federal government may mop-up solely 4.7% extra up to now this 12 months.
As a way to meet the budgetary goal of 17.Three per cent, the expansion in direct tax assortment must be 27% within the remaining months of this fiscal, Mr. Mitra stated.
“Is it possible to meet the target for an economy which is witnessing slowdown?” he requested.
Concerning GST, he stated that assortment of the oblique tax is just not assembly its goal.
Speaking about West Bengal, he stated that the State Cupboard had cleared the proposal of Tata Metaliks’ growth plan in Kharagpur and the corporate will make investments ₹600 crore for this.
The growth venture will create job alternatives for 3,500 folks, he added.