GST Restructuring: Impact on Consumption, Deficit, and GDP

The Indian government is changing how it taxes goods and services (GST).

Many things will now be taxed at either 5% or 18% instead of the old rates.

This change is expected to make some goods cheaper, like soaps and shampoos.

The government hopes this will encourage people to spend more money.

The Finance Minister believes that increased spending will help the economy grow and keep the government's finances in good shape.

She expects that it won't affect how much the government borrows and will reach its economic goals for growth.