Rising fiscal fears

A comprehensive review is needed

Notwithstanding Union Finance Minister Nirmala Sitharaman’s spirited defence of the government’s economic performance on Wednesday, the fiscal position of both the Central and state governments is becoming increasingly worrying with no clear solution in sight. The data presented in Parliament on Monday showed that direct tax collection plunged 17 per cent in October. This means tax collection growth slipped further from 4.7 per cent in the first half of the fiscal year against the expected growth of over 17 per cent for the full year. However, it is not clear at this point as to what extent the reduction in