Thread by @sritara

1 The data on #GST revenues arrives on the first of every month. And, every month, the Indian media - financial as well as general - hypes the numbers, nodding in agreement with the sarkar that it has touched a new "record". Here is a Thread based on April GST collections

2 There is neither context that anchors the latest numbers to some reference point, which could be either in terms of comparison to the previous year or in relation to the size of the economy (GDP at current prices, for instance).

3 Since GST revenues (all taxes for that matter) are always in current prices, and since we know that prices have been on a wild upswing in the last year, context also requires that revenues be compared to prices. Otherwise, revenues would be exaggerated by a “price effect”.

4 Here are some examples of the coverage. This one claims the “highest ever” collection were made in April 2023. Curiously, it notes in the headline that this was just 12 % higher than last April. But, pray, how significant is that 12 per cent increase? indianexpress.com/article/busine…

5 School-grade math would have concluded that since nominal prices even by Govt’s own assessments is growing at 10.5 per cent, the net “record” increase is just 1.5%. “The highest monthly mop-up since the rollout of the indirect tax regime in July 2017,” is just lazy journalism.

6 Here is another from a pink stable (sorry, more yellow), which refers to April 2023 collections as being the “highest ever” in a month? Really? No context of relative prices? No context of the size of the economy in 2017 and in 2023? livemint.com/news/india/rec…

7 Worse, it merrily spins the yarn that it “marks a robust beginning to the fiscal year”. The mandatory quote from NaMo is made - this is “great news”. This too refers to April rev being just 12% more than last April, but this too flunks in arithmetic.

8 This one too makes the inane point about this April’s collections being the “highest ever”, without any reference to relative prices or the size of the economy, although it too makes the point about April 2023 numbers being 12% higher than last April. thehindu.com/business/Econo…

9 Media coverage of GST data ever since they became available, appears to indicate 1 of 3 things a) the most charitable one would be that its just plain lazy journalism b) the little less charitable one is that media establishments seem to be reading from a common script or

10 c) the more disturbing possibility being that the FinMin is orchestrating coverage. Whatever may be at play, the reader is certainly the loser. (END)

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