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GST impact in Q1 will pull down GDP for whole year: CSO
New Delhi, Jan 5 (IANS) While the Indian economy is expected to perform better in the second half of this fiscal, the twin impact of demonetisation and GST implementation is estimated to pull down GDP growth to 6.5 per cent in 2017-18, from 7.1 per cent in the previous year, Chief Statistician T.C.A. Anant said on Friday.
Releasing the Central Statistics Office’s (CSO’s) first advance estimate for Indian Gross Domestic Product (GDP) growth rate in 2017-18, Anant said their projections for the entire fiscal showed that the nominal GDP calculated at market prices is expected to grow at 9.5 per cent, which is lower than 11.75 per cent estimated in the Union Budget presented last February.
The nominal GDP will be used as the benchmark for most indices in the forthcoming Union Budget to be presented on February 1.
“Implicit calculation suggests growth in the second half of 2017-18 will be better than the first. For the next two quarters, we have projected a growth 7 per cent… so the increase of Q2 will be maintained,” he told reporters here.
“Number of figures had come in low for the first quarter for the GDP coming in lower at 5.7 per cent because of industry reaction in anticipation of GST (Goods and Services Tax) coming in,” the CSO said.
Businesses going into a “de-stocking” mode on inventories in anticipation of the GST rollout from July and sluggish manufacturing growth pulled down the Indian economy’s growth during the first quarter of this fiscal to 5.7 per cent, clocking the lowest under the Narendra Modi dispensation.
Breaking a five-quarter slump, a rise in manufacturing sector output, however, pushed the growth rate higher to 6.3 per cent during the second quarter (July-September) of 2017-18.
CSO data showed that in the first half (April-September) of the financial year, the economy grew at 6 per cent, indicating that it will accelerate in the second half (October-March).
Anant said that with more corporate data now being available since the second quarter, including the GST collections for November, although GDP is estimated to grow further, the dampening effect of the first quarter’s fall would pull down the growth rate for the full year.
He also indicated that the government could find it difficult to achieve its fiscal deficit target of 3.2 per cent of GDP.
“Assuming that budgetary targets will be met, which gave a fiscal deficit of 3.24 per cent, our figures estimate it to be at 3.29 per cent, which rounding off becomes 3.3 per cent,” he said.
At the time of releasing the second quarter GDP data in November, Anant had said: “GST has brought in a number of uncertainties because of tax for the period not being paid on time. The government has extended the deadlines for filing GST returns, so the tax data for the relevant period is still coming in.”
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.