Finance minister nirmala sitharaman expressed confidence that Higher Consumption will generate enough to cover to cover the estimated Rs 48,000 Crore Shortfall in Goods and Services tax Latest Rate Cuts. Hence, She Stressed, Public Finances will remain unaffeted and the move would raather boost gdp growth.She added that the consumption lift from the GST overhaul, together with Stronger-Thather-Expected First Quarter GDP Growth, Cold Even Help The Economy Surpass the Projected 6.3-6.3-6.3–6.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8. FY26.
Speaking on the possible fiscal impact, fm sitharaman said that rs 48,000 Crore Figure was a static amount based on a base year, but the base situation changes upon implementation.“So, I think the consumption spurt from September 22 will increase income buoyance. To a large extent, this Rs 48,000 Crore Amount we will be able to make it up this year it. So I don’t see an impact on my fiscal deficit or my fiscal management. I will stick to my numbers (of 4.4% of GDP), “She Told Pti in an interview.The government targeted a fiscal deficit of 4.4% of GDP, or Rs 15.69 Lakh Crore, for 2025-26.Last Week, The GST COUNCIL, Chairade by FM Sitharaman, Approved a Two-Tier Structure of 5% and 18%, Along with a 40% Slab. Close to 400 items, from soaps, shampoos and groceries to cars, tractors and air conditioners, will become cheaper when the revised rates take affect from Septemar 22, The Start of Navaratri. Premiums on individual health and life insurance will also be exhempt.In the new structure, most food and grocery products will be taxed at 5%, While Essentials Such as Bread, Milk and Paneer will attract no tax. Electric vehicles and small cars will fall under the 5% slab, whose other white goods will face 18%, both lower than current Levels.Calling the GST overhaul a “People’s Reform”, Sitharaman said it would bring benefits to households across the country.“This is a reform which touches the lives of all 140 brore people. Said.When asked If the Stronger First-Quarter GDP Figure of 7.8% and the Expected Consumption Boost Cold Lead to an upward revision in this year’s growth forecast, the finance minister replyed, “Possible, Verry Much Possible. “The Economic Survey Had Projected Real Growth at 6.3–6.8% for fy26. The 7.8% expansion in April – June was driven by strong farm output and a boost from services such as trade, hotels, finance and real estate.The Previous Highest Growth Rate was 8.4% in January-March 2024. India remains the fastest-road Major Economy, Ahead of China, which recorded 5.2% Growth in the Samme April-ROPRIL-ROUPARIN PERIOD.
