Prof Mithilesh Kumar Sinha Finance Officer Nagaland University, Lumami The Economic Survey report 2017-18 on Monday was tabled in both houses of the Parliament by Finance Minister Arun Jaitley ahead of the Union Budget 2018, in which it was projected that The Indian economy is expected to expand at 7-7.5% in the next financial year, 2018-19, For the Country: India’s discontinuation of old high-value currency notes in November 2016 has helped in widening the tax net. According to the Survey, 1.8 million new individual tax payers have been added since demonetisation. Indirect tax base too has increased after the rollout of the goods and service tax (GST). A preliminary analysis of the Goods and Services Tax (GST) data reveals that there has been a 50% increase in the number of indirect taxpayers, besides a large increase in voluntary registrations, especially by small enterprises that buy from large enterprises and want to avail themselves of Input Tax Credits (ITC),” the Survey stated. According to the Economic Survey, there were 9.8 million unique GST registrants, an increase by 3.4 million compared to the previous tax regime. While Maharashtra, UP, Tamil Nadu and Gujarat have the number of GST registrants, West Bengal has seen the largest increase in the number of tax registrants. It became evident that when “formality” was defined in terms of social security provisions like EPFO/ESIC, the formal sector payroll was found to be about 31% of the non-agricultural work force. When “formality” was defined in terms of being part of the GST net, such formal sector payroll share was found to be 53%. The Survey also called for encouraging ship-building and manufacturing, given India’s strategic location along international trade routes. “Around $4.5 trillion worth of investments is required by India till 2040 to develop infrastructure to improve economic growth and community well-being. The current trend shows that India can meet around $3.9 trillion infrastructure investment out of $4.5 trillion,” The Survey has suggested that the country has to “rekindle the excitement and purpose that would attract more young people to scientific enterprise”. It has also stressed the need to invest in science to address the multiple uncertainties arising due to climate change and new emerging threats, such as cyber warfare, to autonomous military systems. For the Economy: In the last three fiscal years, India experienced a positive term of trade shock. But in the first three quarters of 2017-18, oil prices have been about 16 percent greater in dollar terms than in the previous year. It is estimated that a $10 per barrel increase in the price of oil reduces growth by 0.2-0.3 percentage points, increases WPI inflation by about 1.7 percentage points and worsens the Current Account Deficit (CAD) by about $9-10 billion dollars. Economic Survey calls for “policy vigilance” in the coming year if high oil prices persist or stock prices correct sharply. For the Common Man: Economic Survey 2018 states that there has been a substantial avoidable litigation in the tax arena which government action could reduce. The apparel sector has immense potential to drive economic growth, increase employment, and empower women in India. The Survey observes that the economy has witnessed a gradual transition from a period of high and variable inflation to more stable prices in the last four years. Economic Survey is an annual document of the Ministry of Finance, Government of India, and reviews the developments in the Indian economy over the previous 12 months, summarises the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. Child and maternal malnutrition posed the most challenging health risk in India in 2016, followed by air pollution, dietary risks, high blood pressure and diabetes, according to the Economic Survey 2017-18, presented in Parliament on Monday. “In 2016, malnutrition still remains the most important risk factor (14.6%) that results in disease burden in the country. Neonatal disorders and nutritional deficiencies as well as diarrhoea, lower respiratory infections, and other common infections are manifestation of maternal and child malnutrition,” said the report. It recommended solutions such as ‘congestion pricing’ for vehicles, expanding and improving the public bus system to reduce private vehicle use, and phasing out of old vehicles, and accelerating Bharat Stage VI (BS VI) emissions norms, which are due to be in place from April 2020. The Survey has recommended that the nation must confront the societal preference for male offspring. Noting that schemes such as Beti Bachao, Beti Padhao, Sukanya Samridhi Yojana and mandatory maternity leave are steps in the right direction, the Survey has called for stronger commitment on the gender front just like how the government is committed towards Ease of Doing Business.
