Sovrenn Times: Macroeconomy Update | 11 August 2025
Karnataka GST Evasion Surges 5x to ₹39,577 Crore in FY25
Central GST officers in Karnataka uncovered ₹39,577 crore worth of tax evasion in FY25, marking a more than fivefold increase from ₹7,202 crore in FY24. According to Finance Minister Nirmala Sitharaman’s reply in the Lok Sabha, 1,254 cases were detected, nine arrests made, and ₹1,623 crore recovered through voluntary payments.While the minister clarified that no CGST notices were issued based on UPI transactions, local reports indicate several small traders in Bengaluru received high-value GST notices from State GST offices based on digital payment footprints. In comparison, FY24 saw 925 cases with only two arrests, and FY23 recorded ₹25,839 crore in evasion across 959 cases.
₹3,200 Crore First Installment Released Under PMFBY to Aid 30 Lakh Disaster-Hit Farmers
The Centre has disbursed ₹3,200 crore as the first installment under the Pradhan Mantri Fasal Bima Yojana (PMFBY) to around 30 lakh farmers impacted by natural disasters, with an additional ₹8,000 crore to follow. Agriculture Minister Shivraj Singh Chouhan warned that insurance firms delaying payouts will incur a 12% interest penalty payable directly to farmers. Launched in 2016 and marking its ninth anniversary this year, PMFBY covers crop losses from calamities like droughts, floods, and pests, and has seen non-loanee farmer participation rise to 55% in FY24. The scheme, extended till 2025-26 with a ₹69,515.71 crore budget, aims to stabilise farmer incomes and promote modern agricultural practices.
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Govt Sells Tomatoes at ₹47–60/kg in Delhi to Curb Monsoon Price Spike
The Centre has fixed subsidised retail prices for tomatoes in Delhi at ₹47–60/kg through the NCCF to ease buyer pressure after rains pushed prices up to ₹85/kg in late July. Since August 4, NCCF has sold over 27,300 kg via outlets and mobile vans, with prices reflecting procurement costs. Delhi’s average price now stands at ₹73/kg, higher than Chennai (₹50) and Mumbai (₹58), due to weather-related supply disruptions. The all-India average retail price is ₹52/kg, below last year’s ₹54 and far from the 2023 spike of ₹136. Potato and onion prices remain steady, with a 3 lakh tonne onion buffer set for release from September, supporting the government’s broader food inflation moderation efforts.
Govt Expands Export Push to 50 Nations Amid US Tariff Hit
Amid steep US tariffs on Indian goods, the government is widening its export strategy to target 50 countries — up from 20 — across regions like the Middle East and Africa, which together account for 90% of India’s exports. The commerce ministry is working on four pillars: export diversification, import substitution, and boosting competitiveness, with a product-by-product analysis underway. India’s exports were flat at $35.14 billion in June, while the April–June period saw a modest 1.92% rise to $112.17 billion. Imports grew 4.24% to $179.44 billion, narrowing the trade deficit to a four-month low of $18.78 billion.
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Revised Income Tax Bill 2025 Streamlines 536 Sections, Incorporates Key Panel Recommendations
Finance Minister Nirmala Sitharaman has tabled a revised Income Tax Bill in the Lok Sabha, replacing the withdrawn February draft to incorporate recommendations from the Baijayant Panda-led Select Committee. The updated version retains 23 chapters, 536 sections, and 16 schedules but corrects drafting errors and clarifies provisions — such as specifying the 30% house property deduction post municipal taxes, extending pre-construction interest benefits to let-out properties, and ensuring clarity on “deemed rent” calculations. The bill continues with simplified language, consolidated deductions, unchanged tax slabs, and a “trust first, scrutinise later” compliance model, aiming to replace the six-decade-old Income-Tax Act, 1961 without altering the core framework.