GST, farm debt waivers likely to hit fiscal consolidation

Liabilities of states that opted for UDAY may increase

A day after the government released buoyant tax figures because of the goods and services tax (GST), the Reserve Bank of India cast doubts over short-term revenue mobilisation. 

Besides, farm debt waivers in some states could mar fiscal consolidation efforts there, it said. This, the report said, could impact fiscal consolidation at both the Centre and state levels, as this fundamental reform gains pan-India traction. 

According to figures released by Finance Minister Arun Jaitley on Tuesday, the Centre and state governments have earned Rs 92,283 crore from the GST in July, against a target of Rs 91,000 crore. This  even