Editor's Pick: The right comparison for GST growth

The gross Goods and Services Tax revenues for the month of August stood at Rs. 1.12 lakh crore, the Finance Ministry has said. This is a dip from the Rs. 1.16 lakh crore collected in July, but a 30% growth compared to August 2020 and 14% higher than August 2019. The Finance Ministry has pointed to the comparisons with the previous years to peg this August's figure as an indicator of growth. However, outside analysts are not convinced. Along with the month-on-month dip in GST collection, they are pointing to other factors such as dampened core sector growth and low manufacturing sector PMI. The manufacturing sector's Purchasing Managers’ Index (PMI) slid to 52.3. from July’s 55.3 as growth in new orders dipped. This resulted in the recruitment in the sector pausing again, after having resumed in July after 15 months of shedding jobs. However, a PMI figure over 50 still indicates growth; in June, it had gone to 48.1 -- indicating contraction -- as the COVID-19 second wave impact was felt. Analysing the GDP numbers for Q1 release a day earlier, The Hindu's editorial today says that "looking ahead rather than in the rear-view mirror, there have been signs of some traction" in the economy. This accompanies most States easing second wave restrictions. The numbers, however, remain well below the pre-pandemic levels. The editorial also points to factors that could affect the strengthening of the economy, such as lowered private and public spending, rising raw material costs and the monsoon shortfall. It points out that the government will need to sustain consumer demand to bring the economy back to pre-pandemic levels. The government might be keen to highlight comparisons that show growth, but what make this story important are the areas of concern that the outside analysts and The Hindu editorial point out. The Hindu's Editorials Fleeting cheer: On GDP growth and consumption demand For a bona fide press: On weeding out ‘fake journalists’ Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more. Click here Try out The Hindu's daily news quiz Which country opened the first road-rail transport link to the Indian Ocean? 1. Nepal 2. Bhutan 3. Pakistan 4. China To find out the answer and play the full quiz, click here [logo] Editor's Pick 02 SEPTEMBER 2021 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( The right comparison for GST growth [The right comparison for GST growth] The [gross Goods and Services Tax revenues]( for the month of August stood at Rs. 1.12 lakh crore, the Finance Ministry has said. This is a dip from the Rs. 1.16 lakh crore collected in July, but a 30% growth compared to August 2020 and 14% higher than August 2019. The Finance Ministry has pointed to the comparisons with the previous years to peg this August's figure as an indicator of growth. However, outside analysts are not convinced. Along with the month-on-month dip in GST collection, they are pointing to other factors such as dampened core sector growth and low manufacturing sector PMI. The manufacturing sector's Purchasing Managers’ Index (PMI) slid to 52.3. from July’s 55.3 as growth in new orders dipped. This resulted in the recruitment in the sector pausing again, after having resumed in July after 15 months of shedding jobs. However, a PMI figure over 50 still indicates growth; in June, it had gone to 48.1 -- indicating contraction -- as the COVID-19 second wave impact was felt. Analysing the GDP numbers for Q1 release a day earlier, [The Hindu's editorial today]( that "looking ahead rather than in the rear-view mirror, there have been signs of some traction" in the economy. This accompanies most States easing second wave restrictions. The numbers, however, remain well below the pre-pandemic levels. The editorial also points to factors that could affect the strengthening of the economy, such as lowered private and public spending, rising raw material costs and the monsoon shortfall. It points out that the government will need to sustain consumer demand to bring the economy back to pre-pandemic levels. The government might be keen to highlight comparisons that show growth, but what make this story important are the areas of concern that the outside analysts and The Hindu editorial point out. The Hindu's Editorials [Arrow][Fleeting cheer: On GDP growth and consumption demand]( [Arrow][For a bona fide press: On weeding out ‘fake journalists’]( [underlineimg] Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor's Pick and more. [Click here]( [underlineimg] Try out The Hindu's daily news quiz Which country opened the first road-rail transport link to the Indian Ocean? 1. Nepal 2. Bhutan 3. Pakistan 4. 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