[V.Narayan]

GST collection of Rs 168,000 crores for April 2022 highest ever

https://www.livemint.com/economy/gst...390478432.html

GST collections are growing each month reflecting vibrancy in the economy and shift in manufacture and trade away from the unorganized sector to the organized tax paying sector. Some of this of course is the impact of inflation, exactly how much I don't know. But more money in the hands of both the State & Central Govt's is a good sign.

[Gsynch]

Originally Posted by V.Narayan

[b]Some of this of course is the impact of inflation, exactly how much I don't know.

GST Collection MoM & YoY is 20% as compared to the last month and the same month last year. Inflation may have contributed 6-8% but I would like to believe that buoyancy in economic activities is surely contributing to the larger part of this growth. Hope to see more welfare schemes reaching the last mile with this additional kitty with both the Center & State Governments.

[DigitalOne]

Originally Posted by V.Narayan

GST collection of Rs 168,000 crores for April 2022 highest ever


GST collections are growing each month reflecting vibrancy in the economy and shift in manufacture and trade away from the unorganized sector to the organized tax paying sector. Some of this of course is the impact of inflation, exactly how much I don't know.

Yes, recent changes in the GST rules have made it very difficult to be GST non-compliant or remain in the unorganized sector. Some of the highlights:

1. eInvoicing has been made mandatory for any company with annual turnover of 20Cr.

2. If any company does not comply with their GST returns, they are blocked in the GST/eInvoice portals i.e. other companies cannot buy from/sell to these non-compliant companies.

3. GST collection onus now on Food delivery apps like Swiggy/Zomato and not on the restaurant. My guess is this would be a major generator of GST for the government now.

[srini1785]

I am not a Economics wiz but wouldn't it be better governance if IT dept actually furnishes a list of works that were done by my tax money?. Say i paid around 30K as taxes in AY2020-21 and the IT dept can actually say "Look we used your money in part to fund border roads at Ladakh". It gives some kind of fulfillment that i contributed to nation building.

It would also help if the govt actually comes up with a Local area development scheme and say that people can contribute directly to that fund instead of contributing to the IT funds. Yeah, wish full thinking.

[DigitalOne]

Originally Posted by srini1785

I am not a Economics wiz but wouldn't it be better governance if IT dept actually furnishes a list of works that were done by my tax money?. Say i paid around 30K as taxes in AY2020-21 and the IT dept can actually say "Look we used your money in part to fund border roads at Ladakh".

The IT department is just one of the revenue collection arm of the government and it certainly cannot disburse any amounts to any ministry .

The government gives pretty detailed revenue and expenditure accounts as part the annual budget exercise. You can read it here :
https://www.indiabudget.gov.in/

[.sushilkumar]

Originally Posted by V.Narayan

GST collection of Rs 168,000 crores for April 2022 highest ever

https://www.livemint.com/economy/gst...390478432.html

GST collections are growing each month reflecting vibrancy in the economy and shift in manufacture and trade away from the unorganized sector to the organized tax paying sector. Some of this of course is the impact of inflation, exactly how much I don't know. But more money in the hands of both the State & Central Govt's is a good sign.

IMO Coupled with high inflation, the movement of unorganized sector to the organized tax paying sector helped in record mop up. Govt can collect more by reducing that 20 Crores eInvoicing limit to 1 crore. That will be a major windfall as all small time operators fall under this 1 crore & above bracket. This should affect the direct tax collections also. Hopefully this will result in some relief for TDS tax payers.

As for "V" shaped "economic recovery" goes, I suspect that if we go via the pain being felt in rural & hinterland. There is a reason why govt extended the food subsidy by another 6 months.

[V.Narayan]

Rs 80 to the dollar is now in sight and if you stand on tip toes Rs 85 to the $ can be seen on the distant horizon too. Depreciating Rupee + inflation we've not witnessed in 20 years + cost of oil imports likely to be high and uncertain + FII outflows = a bumpy ride in economics for the nation. At the helm real and meaningful competency in macro economics is in desperate short supply.

[Samurai]

If you notice all the prominent currencies, every one of them is crashing against the dollar. Only notable exception is ruble (sic).

Pound, Euro, Yen, Yuan, even Canadian and Aussie dollars. Which basically means the demand for dollars is raising. This could be because of petrol price raise as well as fed rate going up since March.

[V.Narayan]

^^^^^^
Demand of the $ is rising as in a sea of trouble even an upturned lifeboat is an island of relative temporary safety. That does not detract from the fact that the inflation we are importing is not real. In my uneducated view over the next ten years we might, I'm not saying will, but might see a lot of churn in the relative positions of currencies, how Central Banks store wealth and which currencies if any start to be used in daily trade alongside the $. To quote Ernst Hemmingway - change comes gradually and then suddenly.

On another subject, where currencies and balance of economic power goes the next 10 to 12 years might witness some once in a lifetime changes. With the US economy at ~$24 trillion and the Chinese at ~$19 trillion the gap is now within shouting distance. It may not take more than 15 years to close that gap even as both giant economies grow slowly. Of course in PPP terms China overtook USA 7 years ago.

[V.Narayan]

80 PER CENT OF ALL US DOLLARS EVER WERE PRINTED IN THE LAST 22 MONTHS

This is what the Western economic system has become.
Socialism for the rich; capitalism for the middle and working class.

https://www.advanceaustralia.org.au/...%2022%20months.

The debt crises which could hit Western economies and the economies of USA, UK, France and Australia in that order does not get talked about. But it is real and Central Banks in some Western countries are merely printing more money to kick the can down the road. Some members have just witnessed the first implosion in their lives with all these inflated valuation unicorns collapsing. If USA’s debt implodes due to an external factor like a war or climate event the USA’s inability to honour its debt will drag a lot of us under.

Excerpts from the new link……

Although you’d never hear about it on the 6 o’clock news, a whopping 80 per cent of all US dollars in existence were printed in the last 22 months.

Why?

Well, given global debt is now a terrifying 356 per cent of world GDP, the world’s largest central bank – the Federal Reserve – doesn’t want to let interest rates rise to where they should be.

How do these people keep rates artificially low to ensure the over-indebted global economy continues to limp along for as long as possible before finally falling off the inevitable cliff?

The answer is: money printing (or quantitative easing as the bureaucrats call it to confuse the average punter).

More specifically, central banks like the Federal Reserve print money out of thin air to purchase public and corporate debt off the big banks like JP Morgan and Goldman Sachs. JP Morgan and Goldman Sachs use the freshly printed money to plough more capital into stocks and issue more debt in the property market. As a result, the price of assets (that are already overwhelmingly owned by the uber-wealthy) go up.

Stock prices go up. Property prices go up even further. Given there is now more money chasing less goods and services, the price of everyday items go up. As a result, the middle and working classes get squeezed.
Even worse is the way in which the middle and working classes see no benefit from the money printing. By the time the freshly printed money reaches the real economy, prices have already gone up, undermining any increase in the purchasing power of average consumers. Only the bankers and those holding stock and property assets enjoy the benefits!

For instance, to ensure the system keeps rolling along, the Federal Reserve instituted a policy in 2020 that defies the laws of nature. To try and keep the banks afloat, the Federal Reserve issued a decree saying banks have a zero-reserve requirement going into the future.

In other words, if Joe deposits $1000 into a savings account at a commercial bank, the bank can loan out Joe’s $1000 immediately without holding any reserves in case Joe comes back to withdraw all or a part of his savings. This means that if everyone goes to the bank at the same time to withdraw, the bank would run out of money and the depositors’ savings would evaporate into thin air.

And as if it couldn’t get any more sickening, it’s the taxpayer that will pick up the tab if a bank found itself in such a situation. This is what the Western economic system has become. Socialism for the rich; capitalism for the middle and working class.

When a bank fails because it decided to sell dodgy financial instruments that hide underlying structural risk via aggregation to pension funds, the taxpayer bails the bank out.

When the banks spend years accumulating debt and misallocating capital, their mates in the central banks print money (create inflation) to keep rates artificially low so management can continue their swindle into retirement.
Unfortunately, all this does is increase the price of basic goods and services for normal people while inflating the price of the assets the elites denominate their wealth in.

As Mark Latham wrote a year or two back, “the Reserve Bank of Australia must use Quantitative Investment with its printed money, not just Quantitative Easing. Put the money into State capital works, urgently needed! Build roads, rail, power stations, dams and tech colleges to create work, improve productivity and lift business confidence.”
We can’t let bankers think they can print a nation out of financial crises forever. Only by backing nation-building productive investment will this country get back to the position of eminence where it should be.

[Sran]

Originally Posted by V.Narayan

https://www.advanceaustralia.org.au/...%2022%20months.

Excerpts from the new link……( For instance, to ensure the system keeps rolling along, the Federal Reserve instituted a policy in 2020 that defies the laws of nature. To try and keep the banks afloat, the Federal Reserve issued a decree saying banks have a zero-reserve requirement going into the future. )

Has USA forgone Basel norms. What about CAR, its supposed to be 12%?

There is already negligible interest rate on savings there and this forces american public to invest in secondary markets and this props up their capital markets. US is going towards stagflation and sleepy Biden with his lapdog media is happily lying to its citizen.

[dragracer567]

A couple of arguments about the eternal debate on the gold standard.

https://www.youtube.com/watch?v=S-6WNmL26wE

[PGA]

Originally Posted by V.Narayan

If USA’s debt implodes due to an external factor like a war or climate event the USA’s inability to honour its debt will drag a lot of us under.

There is a song I like and it explains the situation from some angles

https://youtu.be/55q6jrfBDdk

I quite agree that anyways one may look economic discomfort of varying proportion seem quite inevitable now. IMHO the solution is available in the history and not in economics or with its proponents who kept the debt party on for too long a time.

Is perpetual positive growth possible, is it natural. Has it happened anytime in the history of mankind. I think what we saw post WW2 was a short age of innocence and now we are well on our way back to the age of tribalism and triumphalism better armed to do even greater destruction. Pardon me for getting carried away with words. The impact of economic policies, geopolitics, technology, climate and social discord has unlocked the monster of global inflation. Rate hikes are too mild an instrument, btw China has just reduced their interest rates by 15 bps, so there goes out of the window some efforts being made by no 1,3,4 ....,. Impact of runaway inflation that too at global scale has the ability to create very destructive situations.

History does have some answers but who is willing to have a look at it when each one is trying to make a new one.

[landcruiser123]

An interesting reads on how a few countries mask their true problems by making a segment of the population carry a disproportionate burden.
https://asia.nikkei.com/Opinion/Soak...e-world-s-poor

[Samurai]

More details on how Milton Friedman and his gang destroyed world economics, by shifting the focus from stakeholders to just shareholders.

https://youtu.be/1BgGCu5N--I