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Govt. need to take measures to handle the stressed economy

An estimated 10 million salaried jobs have been lost together in rural and urban India and this will unquestionably delay the recovery in the broader economy. Having already been hit during the first wave, while the second wave may cause the economy less damage than the first one did, once again and it will be the smaller businesses that get hit the worst. The June quarter could well be a bit of a washout, but demand is expected to perk up in the second half as the vaccination drive picks up and the festive season kicks in. The government must come up with an adequate response to this situation. It must support the economy in general so that more businesses can flourish and support more employment.
The tax collections for FY21 have been robust with the net receipts higher than revised estimates by Rs 78,000 crore. The Centre collected Rs 9.45 lakh crore from direct taxes (post-refund, pre-devolution) higher by Rs 40,000 crore than the Retained earnings. corporate tax revenue exceeded the revised estimates by Rs 11,000 crore.The government should use this opportunity to raise corporation tax rates of companies which are doing exceptionally well and can afford to pay a higher tax rate for a couple of years. A 30% tax rate won’t be affecting them.Meanwhile, the additional revenue can be used to bring some succour to MSMEs and also the less privileged; MGNREGA allocations can be increased and more cash transfers can be made. Meanwhile, the additional revenue can be used to bring some succour to MSMEs and also the less privileged; MGNREGA allocations can be increased and more cash transfers can be made.

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