After Chandrababu, now Stalin urges people to have more kids, links it to fears over delimitation
This is not the 1st time the DMK leader has raised concerns over delimitation. His remarks come after AP CM urged people in the south to have more kids to combat declining population. Key Points
ThePrintSpectre of retrospective taxation hangs again: EAC-PM member on mining royalty verdict
The Supreme Court's July 25 verdict permitted states to collect past royalties and taxes on mining since April 2005, causing concerns over retrospective taxation. The judgement directs the Centre and mining companies to pay arrears, estimated between Rs 1.5-2 lakh crore, over a 12-year period. The decision has significant financial implications. Key Points
Economic TimesGranting special status to Bihar, AP should be decided on non-political considerations: Ashima Goyal
New Delhi, Jul 1 (PTI) The issue of granting special category status (SCS) to Bihar and Andhra Pradesh should be decided on non-political considerations by a constitutional body, RBI’s monetary policy committee member Ashima Goyal said on Monday. Goyal further said the 14th Finance Commission has already ruled on special category status states. Andhra Pradesh […] Key Points
ThePrintFinance Ministry announces additional Rs. 1.39 lakh crore tax devolution to states for June
New Delhi [India], June 10 (ANI): Finance Ministry has announced the release of an additional installment of tax devolution to states for June 2024, in a move to support state finances and spur economic development. The total amount released to states for June now stands at Rs 1,39,750 crore. This decision aims to provide states […] Key Points
ThePrintWith Musk set to visit India, here’s a look at which Indian states are favourites for auto FDI & why
Government data shows MNCs have favourite states when it comes to where to invest. Auto companies especially look for specific advantages that some states have & concentrate on those. Key Points
ThePrint
Eight Indian states will cross the $1-trillion mark by FY47
The states are likely to miss their goals to become a $1 trillion economy. Maharashtra has set a goal to achieve $1 trillion economy by FY28, followed by Uttar Pradesh, Tamil Nadu in 2030 and Karnataka by 2032. Key Points
Economic Timesstates may not borrow as much as they wanted. But that may not be a problem.
So far in FY24, states have raised about ₹9.76 trillion of the targeted ₹10.88 trillion, according to data from RBI Key Points
mintstates usurping branding of central schemes may lose cheaper capex loans
The Centre is planning to tighten conditions under this facility, as cases of state governments, particularly ruled by opposition parties, renaming centrally sponsored schemes to portray them as their own programmes, a senior government official familiar with the matter told ET. Union finance minister Nirmala Sitharaman had in September 2022 in Telangana flagged the issue of Prime Minister Narendra Modi's picture missing from a local fair price shop. Key Points
Economic TimesLok Sabha polls in 7 phases: Which state will vote when? All details here
The Chief Election Commissioner announced the 2024 Lok Sabha election schedule, spanning seven phases starting April 19 in 22 states and UTs. Uttar Pradesh, Bihar, and West Bengal will have voting on all seven dates, while Jammu and Kashmir will vote in five phases. Key Points
Economic TimesUnspent Central funds to states to be settled in real time from Apr 1
Starting April 1, the settlement of unspent funds from the Centre to states through the single nodal agency (SNA) will occur within a day, eliminating the need to park it outside the government account for more than 24 hours. This move aims to make fund usage more efficient and transparent. The Department of Expenditure and the Reserve Bank of India are upgrading the SNA system to settle the unused amount in real time, thereby preventing disputes over interest payments on unspent funds. Key Points
Economic Times
US presidential polls: Donald Trump, Joe Biden set to sweep Super Tuesday. Can Nikki Haley make a mark?
US presidential polls: Voters across 16 US states and one US territory cast ballots in presidential primaries to mark “Super Tuesday”. What is a Super Tuesday and what's likely to happen? Check out here. Key Points
mintSuper Tuesday 2024: Which states are going to vote?
15 states and one US territory will vote for their preferred candidates on Super Tuesday. Find out which states are voting. Key Points
Hindustan TimesDoes BJP’s double-engine sarkar achieve its basic claim of better growth? Data says no
Data reveals no correlation between economic growth and the ‘double-engine’ govts. If anything, states with govts formed by a different political party at the state level perform slightly better. Key Points
ThePrintHere’s what southern states should actually push for
India News: Read this article to understand what southern states should advocate for in terms of resource distribution and tax reforms. Find out why an enlargement of the divisible pool is a more effective approach. Key Points
Times Of IndiaMSMEs demand centralised, single window system for licences and registration
Certain sections of MSMEs are urging the Indian government to establish a single-window compliance and registration system, simplifying the process and alleviating the challenge of registering for shop and trade licenses in each state with varying rules. The request aims to streamline compliance and eliminate delays, enabling businesses with a presence in multiple states to operate more efficiently. Key Points
Economic Times
South India is rightly agitated by unfair allocation. Limiting Centre’s power is the answer
South India's situation is unlike any in large federal unions across the world. US, UK, China, Germany, and Spain correct their fiscal imbalances through tax policy. India is making it worse. Key Points
ThePrintNiti Aayog to estimate gap between states' renewable capacity, future needs
The Niti Aayog is conducting an analysis to estimate the potential gap between states' renewable energy capacities and their future electricity needs under existing purchase obligations. This initiative aims to assist states in planning their power resources effectively. The assessment considers states' capabilities in solar, wind, and hydro energy, projecting their ability to meet renewable purchase obligations independently or rely on other states. Key Points
Economic TimesAiling banking sector, inflation, scams — White paper slams UPA for putting economy on 'road to nowhere'
White paper also stresses on how Centre has sought to strengthen states amid protests over tax sharing policy. Introduction of GST was much-needed structural reform, it adds. Key Points
ThePrintFinMin releases Rs 66,745 cr loan to 28 states for capital investment in Apr-Jan
In the 2022-23 fiscal, Rs 81,195.35 crore was released under the scheme. Capital investment projects in diverse sectors have been approved, including health, education, irrigation, water supply, power, roads, bridges, and railways. Funds for meeting the state share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to the states under this scheme to enhance the pace of projects in these sectors. Key Points
Economic TimesShow outcome, get capex loan: Centre to states
Of the ₹1.3 trillion earmarked for the ‘special assistance to states for capital investment’ scheme, about ₹75,000 crore, will be linked to outcomes and reforms. Key Points
mint
Finance minister Nirmala Sitharaman reaches out to more sectors with long term interest-free loans
Finance Minister Nirmala Sitharaman extends the use of long term interest-free loans to multiple sectors, providing much-needed funds for R&D and tourism assets. Find out how this financing tool is helping revive demand and promote reforms in various industries. Key Points
Times Of IndiaWhy the INDIA alliance needs more than a Bharat Jodo Yatra
India News: Find out why the INDIA alliance needs more than a Bharat Jodo Yatra and the challenges they face in the national elections. Learn about the impact of the first yatra and the seat sharing dynamics in the alliance. Key Points
Times Of IndiaHigh debt burdens and dependence on Centre — the unique fiscal constraints of northeastern states
Northeastern states feature among the most indebted. Many of these states also have high levels of committed expenditure, which means they have less left over for capital creation. Key Points
ThePrintInnovation-Killing Noncompete Agreements Are Finally Dying
More US states are moving to bar companies from binding workers with noncompete agreements. Research shows the move could boost wages and innovation. Key Points
WIREDInnovation-Killing Noncompete Agreements Are Finally Dying
More US states are moving to bar companies from binding workers with noncompete agreements. Research shows the move could boost wages and innovation. Key Points
WIRED
Tighten your fiscal belt or sink: IMF ED Krishnamurthy Subramanian warns select states
Punjab, Himachal Pradesh, Kerala, West Bengal, Andhra Pradesh must cut unproductive expenditures, says Krishnamurthy V Subramanian. The former Chief Economic Advisor also said that states with large revenue deficits will find it tough to get out of debt as these are also the states where the growth rate of state GDP is not so high. Key Points
Economic TimesSend all Covid positive samples for genome sequencing: Centre tells states
The directive comes in a week when the outbreak of JN.1 variant in some states triggered concern that it could spark wider outbreaks. | Latest News India Key Points
Hindustan TimesCentre transfers additional Rs 72,961 crore to states above budgeted tax devolution
The Indian government released an additional installment of Rs 72,961.21 crore as tax devolution to states, beyond the regular 14 installments recommended by the Finance Commission. This extra fund aims to strengthen the states' capacity for financing social welfare measures and infrastructure projects. Key Points
Economic Times'Report symptoms, increase testing': Govt advisory amid Covid spike, new JN.1 variant
In view of an upsurge in the Covid-19 cases and the new JN.1 variant, which has been detected in India, the Centre has asked the states to increase the number of RT-PCR tests and send the positive samples for genome sequencing. Key Points
mintstates should look at asset sales in infra sector to bolster revenues: RBI Report
States need to scale up their initiatives for asset monetisation in order to increase non-tax revenue. The monetisation of assets unlocks their value, eliminates their holding cost and enables scarce public funds to be deployed into new projects, thus fast-tracking new infrastructure creation, the report recommended. Key Points
Economic Times
The upcoming 16th Finance Commission has a highly critical task at hand
State poll results make Indian federalism look robust, but fiscal tensions are inevitable. The 16th Commission will have to be very careful if delimitation is done during its award period. Key Points
mintInnovation-Killing Noncompete Agreements Are Finally Dying
More US states are moving to bar companies from binding workers with noncompete agreements. Research shows the move could boost wages and innovation. Key Points
WIREDModi's guarantee stamped on heartland as India gears up for 2024 Lok Sabha elections
The 3-1 scoreline in this round of assembly elections is a comforting signal for the BJPs poll prospects next year. In 2018, it had lost the three states but managed to win 62 out of the 65 Lok Sabha seats in these states in 2019. The party later formed the government in MP following a split within the Congress in 2020. Key Points
Economic TimesMadhya Pradesh: Congress candidate offers earnest prayers at Ujjain's Mahakaleshwar Temple with hours left to counting
Candidates from both the BJP and Congress visited several religious sites in the run-up to the results. The counting of votes in the four states will start today at 8 am and the Election Commission has ensured that all arrangements are in place for the D-day. Key Points
FirstpostState indebtedness to stay high at 31-32% in FY24: Crisil
The rating agency noted that overall borrowings of 18 states, which constitute 90% of the countrys gross state domestic product, is likely to increase by 9% to over Rs 87 lakh crore in FY24 compared with Rs 79.5 lakh crore in FY23. Key Points
Economic Times
State government capex to rise up to 18 percent this fiscal: Report
The increase in spending will be supported by healthy goods and services tax (GST) collection, devolution from the central government (share in central taxes, or SICT), and an higher allocation of Rs 1.3 lakh crore in the form of interest-free loans1 to all the states for capital expenditure (capex). Key Points
Economic TimesIndia's political economy challenge is to contain ‘transfer union’ discord
Perceptions have grown in the Eurozone and India that transfers from richer states are funding profligacy in poorer ones. Measures need to be taken to assuage growing resentment. Key Points
mintIndia’s wicked resource allocation problem has an answer— break UP into smaller states
Uttar Pradesh is too big and corners resources by virtue of its size. It’s unfair to other states. Key Points
ThePrintDevelopmental gaps between Indian states pose challenges and opportunities
In key areas like education, health and infrastructure, all states should aspire to catch up with the best. Beyond that, a state needs to prioritize reforms in areas where it is lagging. Key Points
mintEC seizes drugs, cash, liquor worth over Rs 1,760 crore in five poll-bound states
The poll panel said the seizures made since the polls were announced on 9 Oct are over 7 times greater (Rs 239.15 crore) than those made in the previous assembly election in 2018. Key Points
ThePrint
US carries out air strikes in Syria on Iran-linked facilities, 3rd in less than 3 weeks
The United states conducted another round of air strikes against two Iran-linked sites in Syria in response to a series of attacks against American forces. This is the third time in less than three weeks that the US targeted locations in Syria tied to Iran. Key Points
India TodayCapex to rise 29% for 13 states, fiscal deficit to widen in FY24: Icra
Despite challenges such as missed sales tax targets and reduced grants, capital expenditure in 13 major Indian states is projected to increase by 29% to Rs 6.2 lakh crore in FY24, according to rating agency ICRA. This surge is attributed to increased support from the Indian government, which has raised the allocation for the Scheme for Special Assistance to states for Capital Investments. Key Points
Economic Times'Invisible planes in 4th century India, rockets of Krishna's grandson': What states want in NCERT books
Haryana proposes students be taught that Maharishi Kanada is father of atomic theory not John Dalton. YSRCP-led Andhra says need to 'not succumb to superstition in name of antiquity'. Key Points
ThePrintStates' borrowing cost soars to 23-week high of 7.56%
The borrowing cost for Indian states has increased by 10 basis points to 7.56% at the first weekly debt auction of the third quarter. This is the highest rate in the past 23 weeks. Despite a decline in the average tenor to 13 years, the weighted average cost has risen. Additionally, the spread between the cut-off of 10-year state bonds and the new 10-year G-Secs yield has also increased slightly. Key Points
Economic TimesClearer math soon for states' social scheme budgets
India's Development, Monitoring and Evaluation Office, an attached office of Niti Aayog, is creating a framework for states to implement target-based budgeting in social schemes. The move aims to increase the impact of public money spent on welfare measures. Key Points
Economic Times