State Revenue – Loss In Times Of Lockdown

state revenue upsc
With the imposition of nationwide lockdown and the resulting near-standstill in economic activity, the revenue sources of the government have taken a major hit. Both central and state governments are struggling with drying up of revenues, while simultaneously dealing with increased demand for expenditure in light of the COVID-19 crisis. However, the state governments are affected more as the bulk of expenditure takes place at the state level. Unlike the central government, many of the states depend on the central devolution of funds for its finances.

This content is for General Studies (GS) Members only! Join now & access all Static GS Mindmaps (18 Subjects), Current Affairs [Newsbits (For Prelims), Editorials & Articles (For Mains)]

JOIN & ACCESS ALL

 FREE SAMPLES

IE Vs PRELIMS 2020

Related Articles

Fifteenth Finance Commission – Interim Report & Recommendations

The interim report of the Fifteenth Finance Commission was placed before the Parliament ahead of the General Budget (2020-21). The Commission will submit its report for an extended period of 2020-21 to 2025-26 by October.

This content is for General Studies (GS) Members only! Join now & access all Static GS Mindmaps (18 Subjects), Current Affairs [Newsbits (For Prelims), Editorials & Articles (For Mains)]

JOIN & ACCESS ALL

 FREE SAMPLES

IE Vs PRELIMS 2020

Cooperative & Competitive Federalism in India: Meaning & Challenges

The NITI Aayog, in 2017, had called for Competitive Cooperative Federalism to define the relationship between the Centre and the States. This concept puts the burden of transforming India into the hands of the State governments. In recent times, this concept has gained prominence following the participation of the Chief Secretaries of all States and Union Territories in the presentation of the best practices in each of their jurisdictions. However, NITI Aayog must take the necessary steps to analyse the ground reality so as to provide equal grounds to all the states – including those that are economically and socially marginalized.

[Disaster Series] Disaster Management Act 2005

On 24th March 2020, Prime Minister Narendra Modi had announced a nation-wide lockdown, from 25th March 2020 to 14th April 2020. The nationwide lockdown aims to combat the COVID-19 outbreak that is infecting thousands of people across the country and is intended to enable the concept of “social distancing” to contain the spread of the virus. The lockdown has legal backing based on Epidemic Diseases Act, 1897 and Disaster Management Act, 2005.

This content is for General Studies (GS) Members only! Join now & access all Static GS Mindmaps (18 Subjects), Current Affairs [Newsbits (For Prelims), Editorials & Articles (For Mains)]

JOIN & ACCESS ALL

 FREE SAMPLES

IE Vs PRELIMS 2020

Fiscal Responsibility and Budget Management (FRBM) Act

With the decreasing revenue and increasing expenditure, the Finance Minister took the fiscal expansion path not just for the current fiscal, but also for the next fiscal. This is despite over 37% reduction in food subsidy and nearly 11% reduction in fertilizer subsidy. The deficit for the current fiscal is to be 3.8% as against 3.3% announced in the last year’s budget. This was done by making use of Section 4(2) of the FRBM Act that provides for the deviation from the estimated fiscal deficit. The government argued that this fiscal path aims for fiscal consolidation without compromising the investment needs from the public funds. This shows that there is a need for a comprehensive investment on the capital front to ensure an increase in the revenue for the government and reform in the FRBM Act to make sure that the targets set by this law are achieved.

Home
Books
0
Shop
Bookmark
Account