Zooming taxes, booming economy.

"A sharp rebound in consumer spending and rising employment will sustain economic growth in India in the months ahead, the government said in its monthly economic review for August." ET. "Business investment has been encouraged by government spending which climbed 35% in April-August compared to the same period a year ago, the report said, adding that tax revenue for the government had been buoyant." "Gross direct tax collections grew 30% to Rs 8.36 lakh crore (Rs 8.36 trillion) till September 17 of current fiscal year on higher advance tax mop-up buoyed by the economic revival post pandemic, the finance ministry said." Zee. "This includes revenue from Corporate Income Tax of Rs 4.36 lakh crore (Rs 4.36 trillion) and Personal Income Tax of Rs 3.98 lakh crore." If consumer spending is so high that corporate tax collection is booming then companies must be producing much more. Why then, "Union Finance Minister Nirmala Sitharaman...sought to know from India Inc what is stopping them from getting into manufacturing when countries abroad are showing their belief in India." ET. Is it because high government taxes are squeezing their cash balance? "The Union government...urged bankers to increase lending to the industries segment given the multiplier benefits it offers for the country's economic growth." ET. Department of Financial Services Secretary Sanjay Malhotra said that "the maximum loan growth has been in the retail segment over these years, and the banks have been focusing on the same." Maybe banks have no money left after lending to the Adani Group. "The recent acquisition by the Adani Group of cement maker Holcim's India buisnesses is expected to add another Rs 40,000 crore (Rs 400 billion) to the conglomerate debt, taking it to approximately to Rs 2.6 trillion, an analysis by Credit Suisse showed. The Gautam Adani-led Group has seen its debt levels increase over the past five years from Rs 1 trillion to Rs 2.2 trillion." TIE. "The unemployment level in urban areas has shrunk for the fourth consecutive quarter ending at 7.6 percent in the June quarter of 2022," and "Work demanded under MGNREGS (scheme to help rural unemployed) has been diminishing since May and was the lowest in August 2022, as compared to the same period in the last two years." News18. If more people are employed why are they reducing their spending? "The recent Index of Industrial Production data showed that the consumer non-durable sector contracted by 2 percent and was almost flat in the April-June period. This is a worrying scenario as people have cut back spending on day-to-day items like soaps, shampoo, biscuits among others." ET. The government is pressuring the Reserve Bank (RBI) not to increase interest rate to control inflation because prices are rising due to supply problems. TIE. Sanctions on Russia are not going to go any time soon so if consumer demand increases, as the government claims, then prices are sure to rise further. Increasing interest rate will subdue demand and control prices. If the economy is galloping, why trying to whip industry, banks and RBI into submission? What gives?