The Sixteenth Finance Commission, chaired by Arvind Panagariya, submitted its 2026–31 report to the President after wide consultations. Formed under Article 280, it reviews Union and State finances, recommends devolution, grants, and disaster funding. It will be in public, once presented in the Parliament under Article 281.
Click to View MoreIndia’s public debt, currently around 57% of GDP, has been rising due to persistent fiscal deficits, growing welfare and infrastructure spending, and higher interest costs. High debt limits fiscal flexibility, increases taxpayer burden, and can slow economic growth. The government is addressing this through fiscal consolidation, tax reforms, optimized expenditure, and debt management strategies, aiming for a sustainable debt-to-GDP ratio of 50% by FY31 while supporting economic growth.
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The 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.
Click to View MoreThe Public Accounts Committee (PAC) is a parliamentary body that ensures government accountability in financial matters. It scrutinizes CAG's audit reports, acts as a check on executive expenditure, and promotes transparency by highlighting fiscal lapses. Its advisory recommendations are advisory, making it a vital guardian of public funds.
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