Pro-Poor Growth
If the growth can bring more people out of poverty and raise people’s standard of living, it is termed as Pro-Poor Growth.
Pro-Poor Growth is a narrow concept than Inclusive Growth
In Inclusive growth, we make sure that people at the bottom of the pyramid are not mere recipients of the benefit.
We can achieve pro-poor growth via the Trickle Down Effect, where benefits provided to those at the top of the pyramid trickle down.
But in Inclusive Growth, those at the bottom are also part of growth and aren’t just recipients of the benefits of growth.
GST’s pro poor tack
The Goods and Services Tax (GST) regime has benefitted people through a pro-poor approach
Reflecting a pro-poor approach, the effective weighted average GST rate has consistently fallen since 2017
GST lowered taxes on many essential items compared to pre-GST rates
Common items like hair oil and soaps saw tax cut from 28% to 18%.
Electrical appliances taxed at 12% v/s 31.5% before.
Movie tickets were taxed lower, too
National Anti-profiteering Authority ensured that companies passed the benefits to the consumers.
GST has exempted many essential items and services, such as unbranded food items, certain life-saving drugs, healthcare, education, public transport, sanitary napkins, hearing aid parts, agricultural services, etc
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