9.88%: Central taxes’ share in India’s gross domestic product (GDP) in 2019-20 plunged to a 10-year low of 9.88%.
- Central taxes’ share in India’s gross domestic product (GDP) in 2019-20 plunged to a 10-year low of 9.88%.
- The ratio of central taxes to GDP had stood at 10.97% in 2018-19, and 11.22% the previous year.
- A further decline has been estimated for the current financial year on account of a slump in economic activity in the wake of the global coronavirus pandemic.
- According to estimates, for the govt to meet Budget 2020 estimates, tax collections in 2020-21 will need to grow 20 per cent over last year.
- Tax-to-GDP is seen as a barometer for a country’s economic health. It is both a reflection of the government’s ability to finance its spending and the country’s tax compliance level.
A few links for further reading
Insecure and uncertain in insurance business as Covid-18 damage claims mount
Insurance companies around the world were sailing smoothly, helped by growth in emerging markets and strong capitalisation. Things changed in late February when markets realised that Covid-19’s impact on insurers could be significant. Insurers are yet to know the full impact of the crisis as governments and regulators nudge them to give moratoriums to policyholders and quickly settle claims too. India’s insurance regulator has set strict deadlines for medical insurers to settle Covid-19 claims. General insurers face damage claims from businesses devastated by the national lockdown to contain the disease. Is insurance secured to survive, Joydeep Ghosh explains
There was a time when pay cuts we see today were a complete no-no; govt and public sector jobs were considered safe, as pay and pensions were both assured. Not any longer, it seems, writes T N Ninan
Quick approval, grace period
The COVID-19 pandemic has brought home the significance of health and life insurance like nothing else earlier. Even those who were blasé about these covers in the past are now looking to buy a new policy or want to enhance the sum insured on their existing ones. Meanwhile, the Insurance Regulatory and Development Authority of India (IRDAI) has been issuing a slew of guidelines to health/general and life insurance companies aimed at easing matters for customers.