“The latest data from December 2024 shows that GST collection receipts increased at the second-slowest pace in three and a half years this past month. Net GST collections, after adjusting for refunds, slumped to 3.3% growth – the lowest in FY25. This is concerning news, on several fronts. First, in the first three quarters of this ongoing financial year, the government has recorded an increase in GST collections of 8.6%. The Budget estimates had factored in an 11% growth. This slowdown in revenue collections cannot be justification for the government to further cut down on social welfare programmes like MGNREGA, at a time when rural wages have been stagnant and consumption slackening. Government expenditure must instead be used as a stimulus for the economy,” said the AICC statement issued by communication-in-charge Jairam Ramesh.
“The slowdown also reflects the more fundamental issue of a deeper economic malaise. GDP growth during July-Sept 2024 had slowed to a mere 5.4% – matched by an equally anemic private investment growth of 5.4%. Consumption growth has stagnated, leading to public distress calls from the most prominent voices in India Inc,” it further said.
