Government denoted target of 4% inflation till 2021

Government denoted target of 4% inflation till 2021

Business, Politic Comments Off 53

Central government on Friday set an inflation target for next five years till March 31, 2021, after passage of the Goods and Service Tax (GST) Bill in the Rajya Sabha. Inflation ensures growth and financial stability.

India on Friday formally implemented its central inflation target of 4 percent, an significant confirmation of the inflation-fighting policies championed by Reserve Bank of India (RBI) Governor Raghuram Rajan, who steps down next month.

GST help in the growth and economically changes, Goods and services tax would be levied and taxable collected at each stage of sale or purchase of goods or services based on the input tax credit method. These figures are important because a GST regime is likely to lead to a rise in inflation.

Latest business news had earlier reported that the economic impact of the GST Bill will depend on the finer details, threshold levels, including the final rate, the list of exemptions, and clarity on the processes.

However, assuming tax rates are set at suitable levels, the GST is likely to have a positive impact on GDP, inflation and the fiscal deficit over the medium-to-long term, the report said. Government decided and work for reached 4% inflation till 2021 after 5 years.

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