Just before the assembly elections in Bihar and the upcoming festivals, the central government has reduced GST rates. It is believed that this will directly benefit the middle class, leaving some extra money in their pockets. Following the reduction in GST rates, the country's Finance Minister, Nirmala Sitharaman, expressed her views on which time was tougher between the COVID era and today’s global challenges during an exclusive program on Aaj Tak.
In response to this question, the Finance Minister said, 'We learned a lot from the impact of COVID; when state tax revenues are a concern, it's also the central government's responsibility to keep it stable. The entire nation faced multiple challenges during COVID, but our Prime Minister remained steadfast, never pondering over what might happen next.'
Lessons Reinforced by COVID: Finance Minister
Nirmala Sitharaman quoted PM Modi during a meeting, 'I do not want you to worry about where revenue comes from, but I wish to provide free vaccination to the people of our nation, giving 140 crore people two free doses. We arranged funds through loans and other means, providing free vaccination to the people.'
She further stated, 'I also quoted this during the GST Council meeting about the rate reductions. If some states are worried about revenue and the central government should be concerned, our priority should be the citizens of the country. Then, we need to decide how to mobilize and collect taxes, understanding the Prime Minister’s approach, which is to provide free vaccines without revenue concerns.'
More Savings for the Middle Class
The Finance Minister added, 'Hence, we are now offering relief in the GST slab so that people can use the saved money for themselves or their families. It’s the government's responsibility to empower people and also ensure effective revenue mobilization, a key lesson from the COVID period.'
