Synopsis: In a 2nd setback after Vodafone case, Indian government has lost an International arbitration case to energy giant Cairn, on the issue of retrospective taxation. Introduction The Indian government has lost an international arbitration case to energy giant Cairn Plc over the retrospective levy of taxes, and has been asked to pay damages worth RS. 8000 crore to the… Continue reading India lost Retrospective taxation case to Cairn
Tag: ECO_0
Why Indian Economy is slowing down?
What are the issues facing Indian Economy? COVID pandemic has pulled down the global economy and India’s economy is one of the worst affected among them. In the first quarter of the financial year (April-June), India’s economy had contracted by an unprecedented 23.9%. Whereas in the second quarter, after a bit improvement, economy contracted by… Continue reading Why Indian Economy is slowing down?
Modernise India’s archaic tax laws
Context: Need to modernise India’s archaic tax laws. Contents1 Background:2 People who gained during the Pandemic?3 What are the problems in taxation?4 What can be done? Background: The Income Tax Act was framed in 1961 and has been amended several times. The government constituted the Akhilesh Ranjan Task Force to suggest reforms to the Income… Continue reading Modernise India’s archaic tax laws
Government interventions
Context – The Government’s core belief in ‘minimum government’, which ties its hands when it comes to fiscal measures even in such harsh economic conditions. What are the reasons for the failure of stimulus packages? Lack of Demand– The aggregate demand for goods and services again is dependent on the income and purchasing power of people, which… Continue reading Government interventions
Atmanirbhar Bharat 3.0
Context- Finance Minister Nirmala Sitharaman announced the next set of stimulus package to boost the coronavirus-hit economy. What are the key highlights of 3rd stimulus package? Union Finance Minister on recently announced a third stimulus package to help pull the Covid-19-battered economy. The FM announced 12 measures under Atmanirbhar Bharat3.0 which includes- Atmanirbhar Bharat Rozgar Yojana. Emergency Credit Line… Continue reading Atmanirbhar Bharat 3.0
The Weakened financial capacity of States
Context- With various measures the Centre government has reduced of the fiscal resource capacity of the States. What are the reasons of weakened fiscal capacity of States? Impact of Implementation of GST on States– Since implementation, the Goods and Services Tax appears to have reduced the resource-generating capacity of States and has contributed to worsening… Continue reading The Weakened financial capacity of States
GST Compensation Cess
What is Cess? A cess is an earmarked tax that is collected for a specific purpose and ought to be spent only for that. Cess may initially go to the CFI but has to be used for the purpose for which it was collected. Cess collections are supposed to be transferred to specified Reserve Funds… Continue reading GST Compensation Cess
Centre gives in, says will borrow to make up for states’ GST shortfall
News: The Central government has decided to borrow up to Rs 1.1 lakh crore on behalf of the states to meet the shortfall of Goods and Services Tax(GST) compensation. Facts: Borrowing Mechanism: Under the Special Window, the estimated shortfall of Rs 1.1 lakh crore will be borrowed by Centre in appropriate tranches.The amount so borrowed… Continue reading Centre gives in, says will borrow to make up for states’ GST shortfall
Infrastructure and manufacturing led growth in India
Source-Live Mint Syllabus- GS 3- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Context- India needs to create 90 million non-farm jobs by 2030 to avoid economic stagnation. What is the importance of these two sectors? Construction- 24 million non-farm jobs could come from construction alone by 2030, 16… Continue reading Infrastructure and manufacturing led growth in India
Governance of Public sector units: Privatization of SAIL
Source- The Hindu Business Line Syllabus- GS 3- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Context- To decentralize decision-making and facilitate more informed investment decisions, the Centre has restructured the board of Steel Authority of India (SAIL). How Privatization of SAIL can boost their business? The Appointments Committee… Continue reading Governance of Public sector units: Privatization of SAIL
