Improved tax collections, a foundation to growth, says economic review

Improved tax collection has provided the foundation for sustained and accelerated economic growth this decade, said V Anantha Nageswaran, Chief Economic Adviser to the government, in a report titled “The Indian Economy: A Review”.

The report clearly mentions that it is not the annual Economic Survey, typically presented before the full budget and this year after the General Elections.

The CEA lauded the government for successfully bringing in the goods and services tax (GST)The document says that the “unification of the domestic markets brought in by the adoption of the GST incentivises production on a larger scale while reducing logistics costs.”

Emphasising the impact of the GST, it adds that the expansion of the tax base facilitated by the GST will strengthen the finances of the Union and state governments, enabling growth-enhancing public expenditures