India is currently facing the second wave of Covid-19. At the same time, the Finance Ministry in its monthly report said on Friday that the impact of the second wave of Covid-19 on the economy will be mild compared to the first wave. The report, however, acknowledged that the second wave of corona infection posed a risk of a decline in economic activity in the first quarter of the current financial year.
"There are some reasons why the second wave has less impact on the economy than the first wave," the report said. The economy is expected to remain strong in the second wave by learning to 'operate' with epidemics along with international experiences. "
Improving economic activity improves the central government's fiscal position
The Finance Ministry said that with the improvement in economic activities in the second phase of the financial year 2020-21, the fiscal position of the central government has improved. The net direct tax collection during the year 2020-21 was 4.5% higher than the Revised Estimates and 5% higher than in 2019-20. This indicates an improvement in the economic condition since the first wave of corona infection.
Good growth in GST collection
The report said that good growth has been recorded in GST collection. The monthly collection of GST for the last six months is more than one lakh crore rupees. It was Rs 1.41 lakh crore in April, which is a record. This is a sign of continuous improvement in the economy.
The report it was also believed that the second wave of Corona infection has affected the enthusiasm of the market. The Nifty-50 of the National Stock Exchange and the 30-share Sensex of the BSE are down 0.4 and 1.5 percent, respectively. Similarly, the rupee fell 2.3 percent to 74.51 against the dollar in April. The Finance Ministry said that the situation in the domestic market remains normal with the RBI helping the cash flow with the purchase of government securities in the open market for Rs 3.17 lakh crore in 2020-21.