Subject: Economy Context: The Centre offered two borrowing options to states to make up for the shortfall in the goods and services tax (GST) compensation cess fund. Concept: Option 1: States can borrow the full compensation deficit of Rs 2.35 lakh crore, which includes revenue loss due to transition to GST and also the Covid-led […]

Subject: Economy Context: Commerce and Industry minister virtually launched a first-of-its kind GIS-enabled national land bank portal Concept: It will help investors zero in on land located in various states for potential projects. As much as 4.2 lakh hectares of land has been mapped across 3,275 industrial clusters in India, of which about 1.13 lakh hectares […]

Subject: Economy Context: The Reserve Bank of India (RBI) has retained Rs 73,615 crore within the RBI by transferring it to the Contingency Fund (CF) of the central bank, thus leading to a sharp fall in the transfer of surplus to the government in the current year. Concept: This is a specific provision meant for […]

Subject: Economy Context: The Goods and Services Tax (GST) Council met to discuss on compensating states for revenue shortfall. Concept: GST Council Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax. As per Article 279A (1) of the amended Constitution, […]

Subject: Economy Context: The Reserve Bank of India (RBI) has indicated that the economy which is expected to contract for the first time ever, will take “quite some time to mend and regain” the pre-Covid momentum. Findings: Although data on Gross Capital Formation are not yet available for 2019-20, underlying indicators point to investment having […]

Subject: Economy Context: The government may consider bringing down Goods and Services Tax (GST) on two-wheelers from the highest slab of 28% as they are neither a luxury nor a sin good, hence merit a rate revision Concept: A sin tax is levied on specific goods and services at the time of purchase. These items receive the excise […]

Subject: Economy Context: The Reserve Bank of India announced that it will conduct open market operations or OMO of government t securities worth ₹20,000 crore in two tranches. Concept: Open market operation is the sale and purchase of government securities and treasury bills by RBI without printing new currency. Open market operation is a tool that […]