FC gets presentation from IMF on Resource Mobilisation for Next 5 Years

Speed Post News Network

New Delhi : A Team comprising Ruud De Mooij, Division Chief,  Arbind Modi, Senior Economist, and Ms. Li Lui, Economist, from the Tax Policy Division of International Monetary Fund (IMF), Fiscal Affairs Department, made a presentation before the the 15^th Finance Commission on “resource mobilisation over the next five years”, on January 17, 2020. Some members of the Finance Commission’s Economic Advisory Council also participated in the discussions, which was chaired by N K Singh, Chairman, Finance Commission.

The discussions were centered around options for improving the tax resources of the government with special focus on improving the revenue realisation from the GST. It was presented that the current collections are significantly below an estimated revenue frontier for the country arrived at using robust panel data analysis of comparator countries. It was further discussed that rationalisation of the rate structure as well as improvements in compliance and collection efficiency of GST and other taxes can move India much closer to the frontier. Policy options to achieve this improvement were also discussed, according to a PIB release.