Ad Here  
Excel Generators provide the vital back-up The ‘Jayanthi Tax.’ Fuel for thought Alexa – Talking Wikipedia Tatas moving out of urea production... The Gulf aviation boom Godspeed, Chief Minister JJ Five star activism stalls development activity Preserving for the future EVM is tamper-proof Build close rapport with business leaders When the President was rendered homeless… No engine for this car CSR and CMI: promise of another Srinivasan Ramanujan... Tough task taking states together WTO Meet: resolved to meet again The nuclear option S V Raju – a ‘good’ true liberal This scant respect for Law The Jan Dhan bonanza Don’t seem to feel the pulse… Multi-faceted Venkat Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated EEC at the National Media Centre The sea- saw battle continues... Welcome thrust on trade in Modi’s foreign visits... An inexplicable neglect A rich pool of talent not utilised…. Why this malaise in medical education? When online building permits work…. PPP mode for upgrading Corporation Hospitals Adapt Vajpayee dinner diplomacy Rs.1600 crore paper board plant of TNPL Modi storms Silicon Valley Like Hinduism: many paths to reach God... Naidu’s return augurs well for Seemandhra Editor's Notes Fortune for Indian Airlines Come elections, come advertisements... Roaring Ro-Ro facility Intellectual of rare qualities The balancing act Lesson from Chandrababu Naidu Diamond jubilee of Egmore Samskrt School Shanti and Sadhana through Music Valli, they are more marginalised Infrastructure funding – lessons learnt Revive development banks... Russi Mody – a tribute Towards speedy justice Quality silica from Neyveli More Shakti to resource mobilisation... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines China invests in India Sweeter prospects for sugar Naidu will soon build a new Hyderabad ONGC at KG Basin Breaththrough in malaria control Nuclear power at the nucleus Paytm karo... Tribute He saved millions from starvation... Convulsions in The Hindu When nations steal growth from one another… Online not in line with brick and mortar businesses... Solar thermal shines… A proud Madrasi Fortune 500 review CRS, a jewel among managers, is no more. London, London Narayan Where is Rajaji? How Air-India loses customs... Welcome focus on core competence More heat than light The star of Spencers is no more Where a state respects its litterateurs… Small units prefers to remain small... L&T- the specialty of special purpose vehicles Scientists urged to take up farmer-oriented research Insurance companies bleeding, yet no decision on increasing FDI limit! A welcome initiative by the judiciary Delhi is distant Another Indian music maestro at the UN Fall in crude prices help in oil sector reform Contrarian cousins Things happen by accident and not by design... A friendly business group Delhi is distant… A professional at the helm of IRDA... Engineering seats go abegging Delhi Chalo... Computation of GDP – conundrums continue Adharma of opposition politics Kinetic Karnataka A glass full of corruption The power-full Hindujas IPL type auction for VCs? Put expensive assets created to use... Wanted: a second airport for Chennai Mersal magnified Not just in-laws (and outlaws); they’ve renowned academics at the helm! Cement prices continue to rise… B H Kothari - a tribute Boy, can you beat these? Colour-Chem’s colourful KRVS GM Technology at last! Music happens Should we change the official year? Robber barons everywhere Streamlining mandatory third party cover There was flood of milk. Reason: no milk commissioner! Bihar – Nitish Kumar adopts the Lalu model For whom the bell tolls? Land reclamation from sea appears cheaper! Air Asia India will set new benchmarks for budget travel F C Kohli - his concerns all embracing The rise and fall of Annamalai University IAS invades NDDB... Focus on quality of power - its only around 170-180V Tax agriculture TN accounts for the largest recruits by the IT sector Limit foreign borrowings to hi-tech, export potential projects... Delhi returns to BJP Remembering Indira Sivasailam... L&T: focus on infrastructure and more infrastructure… Protest masters... An informal presentation - analytical, forward locking... Sri Lanka votes for change Tribute – M V Murugappan Strengthen the base... Readers' Mail Poor representation for Kerala and TN in Cabinet Shale gas and its shallow future Welcome GST Noble nonagenarians... Gas is the way forward TIAM turns a full cycle Why land prices zoom in TN? Muffled voices for merit… Return to king coal for urea... Welcome changes that testify to Jayalalithaa’s return to health Telangana in top gear… SoA @ 80 Sweet news for TN sugar mills TELANGANA at last…BUT Cutting the nose to spite the face Plummeting profits of PSBs Discoms deserve better… Eternal support for capitalisation of PS banks More tributes to GR Demise of a media baron... The rise and rise of KCP Inflation: are we emulating Argentina and Brazil? IPL - no surprise this scam Revving up the manufacturing sector TN-leverage strength of BHEL, NLC... The why of tax incentives Liberal imports idling indigenous capacities Funding the un-funded The ‘Ayyo-yes’ is no more Align crops to agro climate endowments… Increasing non co-operation of state leaders Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Wise Presidents Dr C Rangarajan returns to Chennai Cleaning Ganga – relocate tanneries and install electric crematoria GNS - 100: our first subscriber Solar, solar everywhere … A think tank for Chennai Rahman at CIC Poor quality of university VCs Pharma – overdose of copying Mu Sigma – is no more Modi and the lady MHC should not return to its old indisciplined ways Haul over the coal Padma Bhushan for A Ramakrishna Of course, Gujarat is vibrant Permanent secretariat for TN GIM Which side are you, Montek? Gay abandon in pricing Make standards certification mandatory... A C Muthiah – his munificent bequeaths to science No mega rail project for Tamil Nadu Lalu’s envy, India’s pride The Swadeshi Trump CII projects higher growth… No Maha Koottani in TN... Building loyalty through the stomach Polls and promises A Grand Finale for SN’s MS centenary at the US… Whistle-Stop Tour of Raghuram Rajan The few handicaps... S Ramanathan – a versatile musician, musicologist Banning booze... PC’s preference for professionals TGS- The king storyteller Airlines in India: cost and space Moily’s bold thrust Measuring roof tops in terms of KW/MW Tribute – UCAL Selvan… Medical costs hit the roof... Quality education through the PPP mode Kulandai was a giant Parliament in paralysis... Kudos to NDTV... Recognition to role of NBFCs.... He continues the focus on social amelioration Auto components surge… Tatas moving out of urea production... Silver Years of Madras Musings Shaming of Tamils by Tamil farmers at Delhi A yen for wastage… CIPET hqrs to stay at Guindy – for the present? Vibrant Gujarat A Grand Finale for SN’s MS centenary at the US… Bihar elections - the Rajaji formula worked Waning interest in public discussions… West Bengal: mindless malignancy Making ‘my Amaravati’... Road development slows down Reliance’s TV – 18 ready to launch Tamil News Channel When Ratan Tata visited SRM R Sridhar steps down as CEO of Shriram Capital New IT products of Ramco in the pipeline… …and of a popular trade leader When small is no larger beautiful.. More Shakthi to Das’ elbow Shipping woes of Chennai companies The Ports’ Pasha expands into Tamil Nadu Secularism and anti-Hinduism A more liberated TN… Maximising the micro pricing … TN – agglomerate land holdings without alienating ownership Editor's Says Odisha: spectacular win by Naveen Patnaik The brown list of Venkitaramanan Tihar, Puzhal not different from Parappana Agrahara For whom the MIDS bell tolls? An enemy’s enemy is a friend When TN politicians can emulate Kerala's All eyes on Sankara Nethralaya Marketing expert Balagopal is no more Tribute – Manikam Ramaswami
Computation of GDP – conundrums continue

Contrary to the widely held opinion, the Chief Statistician to the Government of India, T C A Anant, said that the tax-GDP ratio for India was not much lower than that of other economies!

Anant reasoned that 45 per cent of businesses and trades do not keep proper accounts and are not coming under the tax net. Factoring this, the tax-GDP ratio is not too bad!, he said.

The tax-GDP ratio, currently 16.6 per cent is way below that of emerging market economies (21 per cent) and the average for OECD countries (34 per cent).

IE has been pointing to the very low number of citizens filing tax returns, of just around three crore out of the 125 crore population. To my query on this, Anant pointed to the high exemption limit of Rs. 5 lakh. By proper planning, one may not pay any taxes upto an annual income of Rs 5 lakh!

Rs. 5 lakh income is no small amount, and it is far higher than the per capita income of Rs. 93,293 for 2015-16. It’s time to spread the tax net wide and bring around 40 per cent under the IT net. A contribution of Rs. 1000 as tax for an annual income of Rs. 2 lakh shouldn’t pose a big burden. We can ensure such payment through efficient computerisation.

The more serious concern should be on getting the 45 per cent to maintain accounts. The attempts of Manmohan Singh to impose a presumptive tax of a measly Rs. 1400 on these sections found resistance and had to be withdrawn.

Hopefully, the introduction of GST will help bring about change.

Anant was addressing the members of the Chennai International Centre and presented the nuances of the computation of the gross domestic product, particularly, the efforts made to refine and re-refine the concept. When the NDA-II government claimed a higher GDP growth on new norms, there was, understandably, scepticism and charges of shifting the goal post. It is normal for experts to disagree, and so the scepticism continues!

 Sunder Ramaswamy, noted economist and acting Head of the Madras School of Economics, made a lucid presentation on the evolution of GDP over the last eight decades with continuous refinements.

 A more pressing issue relates to the sudden spurt in GDP growth recorded by several states, many of them part of the BIMARU states. Remember business magazines going gung-ho over the spurt in GDP growth claimed by Bihar and later by Madhya Pradesh? This can be explained for an odd year by the base being low, but when such growth is reported for successive years, the claims needed closer scrutiny. This has to be related to Anant’s observation that different states follow different norms in computing GDP. Greater attention is required to standardise the rules for such computation.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236