Page 2 - State Finances

Critics frown at freebies by Mahayuti but states' finances remain robust

Mahayuti govt faces scrutiny as schemes like Mukhyamantri Majhi Ladki Bahin Yojana strain fiscal resources amid rising unemployment and prices of food items

Never asked to close madrassas, Muslim children should get education: NCPCR

NCPCR chairperson Priyank Kanoongo said he never called for the closure of madrassas but recommended state funding to these institutions be stopped as they are depriving poor Muslim children of education. He said that Muslim children from improverished backgrounds are often pressured into religious schooling over secular education. We advocate for equitable educational opportunities for all children. In a recent report, the apex child rights body, the National Commission for Protection of Child Rights (NCPCR) raised serious concerns about the state of functioning in madrassas and called for stopping the state funding unless they comply with the Right to Education Act. Responding to the functioning of the madrassas, Kanoongo criticised certain groups within the country for "fearing" the empowerment of the poor Muslim community. "There exists a faction in our nation that dreads the empowerment of Muslims. Their fear stems from the anticipation that empowered communities will demand .

CAG shines a light on state govts' expenses, asks officials for clarity

The CAG last week raised concerns over unclassified expenditures, questioning state finance secretaries over 'hidden' funds marked for various handouts

Nitin Gadkari wants states to pitch for GST cut on flex-fuel vehicles

Share of biofuel will be 50% of fossil fuels in five years, says minister

Finances of municipalities need overhaul as amenities crumble due to rains

Indivjal Dhasmana looks at finances of major civic bodies to analyse why they are underprepared perennially

CM Sai seeks special grants for Chhattisgarh from 16th Finance Commission

Chief Minister Vishnu Deo Sai on Thursday sought special central grants for Chhattisgarh, citing its large tribal population, challenging geographical conditions and Naxal activities in parts of the state, at a meeting held with a delegation of the 16th Finance Commission, said a government official. He stressed that additional financial resources are necessary to bring Chhattisgarh, which came into existence in November 2000, on par with developed states, said the official. During the meeting here with the delegation of the central panel led by its chairman Arvind Panagariya, Sai highlighted that Chhattisgarh is a newly-formed state with a large tribal population and faces challenging geographical conditions. It is also affected by Naxal activities, the CM told the delegation, according to the official. The Chief Minister informed the commission about rapid development works being carried out in Naxal-affected areas and effective measures being taken to curb Maoist activities, he

14 states, union territories raise Rs 35,544 crore at weekly bond auction

Amount higher than scheduled figure of Rs 32,532 crore, a first in seven weeks

Cong MP asks for higher share in Budget, demands separate nation for south

Karnataka politician DK Suresh threatened a call for separate nationhood for southern states after accusing the Centre of disproportionately distributing share of GST and direct tax funds

Nine states record a higher rate of inflation in November, shows data

India's overall inflation rate is higher than all the advanced economies

States' gross fiscal deficit below Budget Estimate for a 2nd yr: RBI report

The implementation of goods and services tax (GST) has led to increased tax buoyancy for the states," the report said

Nine states, 2 UTs see rising fiscal deficits post-pandemic: PHDCCI report

"States are classified as resilient if their fiscal deficit as a percentage of GSDP has decreased from the pre-pandemic to the post-pandemic period," the report says

TMC leaders detained during dharna on 2nd day of protest for state funding

Development came as tug-of-war between Centre and Bengal govt over release of funds to state intensified with TMC holding protests in the national capital for the second consecutive day

States must focus on transparency with regard to finances: NITI Aayog CEO

NITI Aayog CEO B V R Subrahmanyam on Monday emphasised on the need to focus on transparency with regard to states' finances as greater transparency will help states raise resources from market at competitive rates. Participating in a seminar organised by the Centre for Social and Economic Progress (CSEP), he also made a case for having a fiscal council like institution to better manage the debt trajectory of the Centre and states. Transparency is more important than uniformity and states should ensure that everything gets reported in some form or the other because the market values transparency, he said. Citing an example, he said, five southern states accounted for 93 per cent of off- budget borrowing last year while all the high deficit states like West Bengal, Punjab and Rajasthan have low off-budget borrowing. "It is all because of market discipline...people are more willing to lend to these five states as compared to West Bengal, Punjab and Rajasthan," he said, adding, there a

Statsguru: States' finances are improving, debt likely to shoot up

When the Union government announced Budget for 2022-23, it had projected revenue to be 8.5% of GDP. A Business Standard analysis of latest report on state finances showed that states are catching up

Capex push in states

Maintaining the momentum will be challenging

Free grain under NFSA: States to save on food bill, lose political mileage

Food subsidies are a major portion of subsidies provided by states

State finances: Why FPIs need a reality check before they loosen the purse

Greater scrutiny shows that stagnant revenues and unrestrained freebies have left most of them in a perilous position

States' share in central taxes come down to 29-32% against recommended 41%

The previous five years saw the states' share, except for 2019-20, in between 34.5% and 37%, whereas the recommendation was to give them a 42% share

Centre cites policy to reject union's proposal to merge RINL with SAIL

Public sector undertakings (PSUs) in non-strategic sectors shall be considered for privatisation, or they shall be closed, said Minister of State Finance Bhagwat Karat in Rajya Sabha.

GST Council: Stormy discussion around states' compensation likely today

States will demand an extension of the compensation period or a change in the GST revenue distribution formula