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Narrow Fiscal Room GST Cuts and Low Inflation Strain Government Finances

Revenue shortfalls, delayed tax measures, and subdued GDP growth force a delicate balance between growth-focused spending and fiscal discipline
SuryaSurya
••4 mins read
December 2025 GST collections highlight the government’s tight fiscal space amid rate cuts and rising capital expenditure
The Goods and Services Tax (GST) collections for December 2025 stood at ₹1.74 lakh crore, slightly higher than November’s ₹1.7 lakh crore, reflecting economic activity in November under the new, reduced GST rates. The government’s fiscal policy space remains narrow, highlighting the limits of revenue mobilization despite rate cuts....

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The Hindu
The Hindu
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