Union Budget 2024: The Impact of GST Collection on India’s Economic Strategy

The Goods and Services Tax (GST) remains a key focus in India’s economic discussions. As Union Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2024-25 in Parliament on July 23, the GST figures are expected to be a significant consideration.

GST is a multi-level taxation system that effectively encompasses the sale of goods and services across the country. Introduced by the Modi government in July 2017, GST aims to reduce the cascading effect of multiple indirect taxes on the economy. Since its implementation, GST has significantly influenced the Ministry of Finance’s budget allocation.

With GST revenue projected to surpass the Revised Estimate for the current financial year, the central government might consider increasing the targets set in the interim Budget for the next fiscal year during the July 23 Budget announcement.

Although no official statement has been made, experts believe there is a strong possibility of this given the unprecedented GST collection figures.