New Delhi: The Finance Commission on Thursday said despite fluctuations, high GDP growth has continued over the medium term and direct taxes have been sound while there are some periodic ups and downs on the indirect tax front.
The Commission made these observations during its meeting with the Finance Ministry.
"The Commission observed that the GDP numbers have somewhat fluctuated within the overall global trend which suggests continued high growth trend over the medium term. The Commission also noted that the revenue projections on the Direct Taxes are healthy though, on Indirect Taxes, there have been periodic fluctuations.
"On the expenditure trend, there were discussions in regard to the rationalization of the Centrally Sponsored Schemes in sync with the new life cycle, they being co-terminus with the Finance Commissions," the Finance Ministry said.
Detailed discussions of GDP have continued over the last few months with the Finance Ministry on the issues of the consequences of UDAY and the 7th Pay Commission, particularly in the context of the finances of the states.
It presented before the Commission some preliminary views of the government on the Commission's Financial Terms of Reference. (IANS)
Also Read: BUSINESS