Economic Survey 2017-18: Top 10 facts on Indian Economy
The new Economic survey of 2017-18 reveals that there has been a 50 per cent increase in unique taxpayers under the GST in comparison with the pre-GST system and also a boost in exports of ready-made garments.
1. There has been a large increase in registered indirect and direct taxpayers
• There has been a 50 per cent increase in unique taxpayers under the GST in comparison with the pre-GST system.
• There has also been an addition of about 1.8 million in individual income tax filers since November 2016.
2. Formal non-agricultural payroll is much greater than believed
• More than 30 per cent when formality is defined in terms of social security provision.
• More than 50 per cent when defined in terms of being in the GST net.
3. State’s prosperity is correlated with their international and inter-state trade.
States that export more internationally and trade more with other states tend to be richer. However, the correlation is stronger between prosperity and international trade.
4. India’s firm export structure is substantially more egalitarian than in other large countries.
The top one per cent of Indian firms account for 38 per cent of exports. In all other countries, they account for a substantially greater share such as 72, 68, 67 and 55 per cent of exports in Brazil, Germany, Mexico and US respectively.
5. The clothing incentive package boosted exports of readymade garments
The relief from embedded state taxes (ROSL) announced in 2016 boosted exports of ready-made garments (but not others) by about 16 percent.
6. Indian society exhibits strong son ‘Meta’ Preference
Parents continue to have children until they get the desired number of sons. This kind of fertility-stopping rule leads to skewed sex ratios but in different directions:
- It is skewed in favour of males if it is the last child and in the favour of females if it is not the last.
- Where there are no such fertility-stopping rules, ratios remain balanced regardless of whether the child is the last or not.
7. There is substantial avoidable litigation in the tax arena which government action could reduce
The tax department’s petition rate is high, even though its success rate in litigation is low and declining well below 30 per cent.
- Only 0.2 percent of cases accounted for 56 percent of the value at stake.
- About 66 percent of pending cases (each less than Rs. 10 lakhs) accounted for only 1.8 percent of the value at stake.
8. To re-ignite growth, raising investment is more important than raising saving
Cross-country experience shows that growth slowdowns are preceded by investment slowdowns but not necessarily by savings slowdowns may not.
9. Own direct tax collections by Indian states and local governments are significantly lower than those of their counterparts in other federal countries
This share is low relative to the direct taxation powers they actually have.
10. The footprint of climate change is evident and extreme weather adversely impacts agricultural yields
- The impact of weather is felt only with extreme temperature increases and rainfall deficiencies
- This impact is twice as large in un-irrigated areas as in irrigated ones.