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Sunday, May 5, 2024
TopicGST

Topic: GST

52% higher borrowing, big drop in revenue — why states are despairing about their finances

Contraction in economy due to lockdown, extra spending on Covid and shortfall in GST compensation have left states scrambling for money.

GST compensation cess less than one-fifth of total shortfall, Maharashtra among worst hit

Finance ministry says Maharashtra, Karnataka, UP, Gujarat, Tamil Nadu reported largest shortfall in GST collections. Three BJP-ruled states agreed to borrow to meet the shortfall.

Why Centre and not states should borrow to resolve GST compensation impasse

Central govt has argued that states have more headroom to borrow, but estimates suggest that states’ borrowing costs are at least 0.5 percentage points higher.

13 states submit borrowing option for GST shortfall, only Manipur opts to borrow from market

The 13 states include those ruled by the BJP and others like Odisha and Andhra Pradesh, ruled by parties that have supported it on various issues.

Centre vs states GST row doesn’t matter. What matters is reviving economy & a borrowing plan

Since general government debt will rise regardless of who borrows for GST compensation, a plan to move to a sustained borrowing trajectory should be made.

GST an absolute failure, 2nd major attack on India’s unorganised economy, says Rahul Gandhi

Rahul Gandhi alleged that the NDA government has kept four different tax slabs to help big industrialists with means and contacts to change the taxes under the GST regime.

Why India’s bond markets are loving the GST fight between Modi govt and states

The bond market knows New Delhi is terrified of its wrath & is ignoring the simplest option of raising money on its own to fund states in the GST fight.

States politicising tax shortfall, govt has given best package, says GST veteran Sushil Modi

Bihar Deputy CM Sushil Kumar Modi defends central govt’s suggestion that states borrow to make up for GST shortfall, saying both sides should appreciate constraints faced by the other. 

Dear Narendra Modi, please suspend your PR for just two years and focus on India

We need to think beyond post-Covid recovery and ask the larger question: how do we get back to 7-8% GDP growth?

Mamata writes to Modi, says concerns raised by him & Jaitley on GST now becoming a reality

West Bengal CM Mamata Banerjee urges PM Modi to intervene and not belie the trust of the states and ‘violate’ the very premise of federalism.

On Camera

‘Trade, not aid’—Narasimha Rao’s 1991 reforms speech that changed India’s economic landscape

On 9 July 1991, then-PM PV Narasimha Rao addressed the nation days before the Budget presentation, admitting that the job of repairing India's sick economy won't be easy, quick, or smooth.

Air India reduces baggage allowance by 5-15 kg, bringing it in line with rest of industry

Air India’s new policy, effective from 2 May, introduces new weight limits for tickets in each of the different 'fare families' — Comfort, Comfort Plus, and Flex.

China builds road through Shaksgam Valley, India registers protest

New Delhi has, in past, too, objected to Chinese construction activities in Shaksgam Valley. Work in this strategic region gathered pace after the 2017 Doklam stand-off.

Frontrunner is letting the challenger define this poll campaign. Modi still hasn’t found a big theme

A theme has not yet emerged for BJP & people see lack of a contest, which makes it unexciting. For all these reasons, 2024 is turning out to be an unexpectedly theme-less election.