MUMBAI : Quick introduction of the Goods and Services Tax is key to enabling India to achieve its potential growth rate, said the Financial Stability Report released by the Reserve Bank of India.
“Carrying out important economic reforms in tune with market expectations will be highly beneficial to the economy amidst global uncertainties. Implementation of Goods and Services Tax is an immediate necessity so as to enable India to move towards its potential growth rate,” the report said.
Minister of State for Finance Jayant Sinha expressed hope of passage of the GST Bill in the Budget session.
There have been indications that the government could push the implementation of GST to Jun 1 from the original plan of introduction from Apr 1.
erratic climate impact
Reserve Bank of India Governor Raghuram Rajan has warned that despite domestic inflation easing “significantly”, it is imperative that the impact of erratic climatic conditions on inflation movement in future is closely watched.