MP News: GST 2.0 Reduction; Finance Department Works Out Implications On Budget

Bhopal (Madhya Pradesh): In the wake of the Centre’s decision to reduce GST rates, the Finance Department is working out its implications on the coming budget. Revenue receipts are likely to come down.

A senior officer of the department involved in budget preparation said on condition of anonymity that the GST rollback may lead to a drop in revenue receipts.In that case, said the officer, the next budget may include some austerity measures.

Another officer of the department said that it may take some more time to see the effect on revenue receipts. However, he argued, if the demand for goods shoots up in an unprecedented manner due to the GST reduction, the revenue loss may be compensated.

He added that currently, it is too early to say anything regarding the impact of the GST reduction on the next budget. 

Paperless budget prep

The next budget is being prepared in a paperless manner. A portal has been developed for data from departments, saving large quantities of paper. It is an attempt to move towards a paperless budget practice that will save scores of trees.   

Work started Sept 15

Budget preparations started on September 15. The budget is being prepared based onthe Rolling Budget and Zero-Based Budget.

Ceiling for depts

Sources in the Finance Department said that a budget ceiling has been given to the departments. In comparison to the previous budget, a 5-10% growth ceiling has been given to the departments. Finance officers are meeting regularly to deliberate over the budget.