The CAG report warns against unsustainable state debt, stressing that unchecked borrowing risks economic stability. A balanced strategy of fiscal discipline, improved revenues, and strategic spending, with Centre-state cooperation, is essential to protect long-term growth, stability, and federal harmony.
Click to View MoreThe GST reform aims to simplify the indirect tax regime, reduce compliance costs, and address the inverted duty structure. Despite potential inflation and revenue concerns, this reform is crucial for tax administration, formalization, and cooperative federalism.
Click to View MoreThe GST Compensation Cess is an additional tax levied on specific goods and services to compensate states for revenue losses incurred due to the implementation of GST. It was introduced because GST is a consumption-based tax, causing manufacturing states to lose revenue. Initially for five years, its collection has been extended to March 31, 2026.
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