BT Budget Roundtable: Attaining 10% GDP is like a distant dream right now, says Finance Secy Somanathan

T.V. Somanathan, Finance Secretary, while speaking at the BT Budget 2023 Roundtable said that it is realistically impossible to attain 10 per cent GDP in the present era. On being asked about India targeting 10 per cent GDP growth, Somanathan said, “ I doubt that we should. 10 per cent GDP growth in the present era cannot be attainable sustainably. It is not very realistic.”

Goods and Services Tax (GST) has proved to be a boon for India. Sanjay Malhotra, Secretary, Department of Revenue said that GST has something for every segment of society. GST has only done simplification of several complex issues. It has therefore resulted in savings from small taxpayers to big ones.

The panel discussion saw participation from T.V. Somanathan, Finance Secretary, Sanjay Malhotra, Secretary, Department of Revenue and Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management

On tax related benefits, Sanjay Malhotra, Secretary, Department of Revenue said, “We are giving benefits to one and all when it comes to taxes as the taxation rates are going down. Those who are taking the benefits of HRA should ideally shift from the old regime to the new regime. One has to invest about Rs 3.75 lakh in the old regime for it to be more beneficial. Besides that, those who are having a substantial income by HRA give a lot of tax exemptions, others should find benefits in the new regime.”

“Besides that, those who are having a substantial income by HRA give a lot of tax exemptions, others should find benefits in the new regime,” he added.

On home loans, Malhotra said, “Benefits on home loans are limited to Rs 2 lakh and if you add another one and a half lakh rupees in 80C, it becomes Rs 3.5 lakh and above that one needs to invest in insurance.”

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