A case for reassigning GST to States Subject : Economy Section :Fiscal Policy Concept : The vertical fiscal imbalance (VFI) arises between the Union and State governments when the Union has more tax powers than the States and the State governments are assigned with more expenditure responsibilities. It is the responsibility of the […]

    Return to old pension plan is big risk for States, warns RBI Subject : Economy Section : Fiscal Policy Concept : The likely reversion to the old pension scheme (OPS) by some States is a major risk looming large on the sub-national fiscal horizon, according to the Reserve Bank of India’s report on […]

    Export slows down Subject: Economy Section: External Sector Details: India exported goods worth $34.48 billion in December 2022, constituting a 7.75% rise from November’s $32 billion figure but a steep 12.2% dip from a year ago. Imports also contracted 3.5% to $58.2 billion from $60.33 billion a year ago. Reasons for slowdown Base […]

    High interest costs may force RBI to cut dividend to govt Subject: Economy Section: Monetary Policy Context: The Surplus available with the Reserve Bank of India for transfer or the RBI dividend to the Union government is likely to remain low in the current financial year ending March 2023 because of higher expenditure […]