Government may assume real GDP growth of 6-6.5% for Budget 2020. Centre and States set to discuss GST overhaul after Budget presentation.
Numbers Game: Budget 2020 is almost upon us and the government will reportedly assume a growth rate of 6-6.5% in real GDP for the upcoming fiscal. Along with assuming a deflator of around 4%, this could take the nominal GDP outlook for FY21 to around 10%.
It is this nominal GDP forecast on the basis of which the finance ministry is calculating key Budget targets like the fiscal deficit as a percentage of GDP and tax revenue growth for the coming year. More details here.
Coalition of the Unwilling: After the Union Budget is presented on February 1st, the Central and State Governments will reportedly hold fresh negotiations to overhaul the Goods and Services Tax (GST). Restructuring GST slabs and rates, dealing with revenue shortfall, and managing GST compensation to the states are topics that could be on the table. Livemint
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