Andhra Pradesh Current Affairs - 2019

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GoM on GST revenue shortfall faced by states

The GST Council has decided to set up a seven-member committee to look into revenue shortfall being faced by the states after the GST roll-out, and suggest steps for augmenting collections.

The committee would be headed by Deputy Chief Minister and Finance Minister of Bihar Sushil Modi. Other members of the committee include Punjab Finance Minister Manpreet Singh Badal, Kerala Finance Minister Thomas Isaac, Karnataka Rural Development Minister Krishna Byre Gowda, Odisha Finance Minister Shashi Bhushan Behera, Haryana Taxation Minister Capt Abhimanyu and Goa Panchayat Minister Mauvin Godinho.

Terms of Reference of the Committee

The committee headed by Sushil Modi will look into the following aspects:

  • Analyse reasons for the shortfall in revenue collections by the states since July 2017.
  • Undertake data analysis using econometric and statistical tools and suggest suitable measures and policy interventions for course correction for revenue augmentation, particularly for the states suffering high revenue shortfall.
  • Look into account trends of revenue collection before and after implementation of goods and services tax.
  • Structural patterns of major sectors of the economy impacting revenue collection, including the services sector.
  • Identify reasons for deviation in revenue collection trends, compare it with original assumptions worked out at the time of design and implementation of GST.
  • Only Andhra Pradesh and five northeastern states — Mizoram, Andhra Pradesh, Manipur, Sikkim and Nagaland — have recorded revenue increase post the GST roll out.

Revenue Trends under GST Regime

The GST revenue data shows the following trends:

  • A large number of States including Punjab, Himachal Pradesh, Chattisgarh, Uttarakhand, Jammu and Kashmir, Odisha, Goa, Bihar, Gujarat and Delhi are facing revenue shortfall following the implementation of goods and services tax.
  • The revenue shortfall experienced by these states was in the range of 14-37 per cent.
  • Among the Union Territories, Puducherry is facing a maximum shortfall of 43 per cent.

The Goods and Services (State compensation for loss of revenue) act provides for compensation to the states for loss of revenue arising on the account of implementation of the Goods and Services Tax for a period of 5 Years and the projected revenue nominal growth rate for a state during the transition period shall be 14% per annum.

Month: Categories: Business, Economy & BankingUPSC

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Chhattisgarh withdraws general consent accorded to the CBI to probe cases in the state

The government of Chhattisgarh has withdrawn the general consent accorded to the Central Bureau of Investigation (CBI) to probe the cases in the state. The general consent was withdrawn under Section 6 of the Delhi Special Police Establishment Act, 1946.

Delhi Special Police Establishment Act, 1946

The Central Bureau of Investigation (CBI) derives its powers to investigate the cases from the Delhi Special Police Establishment Act, 1946. The Delhi Special Police Establishment Act, 1946 provides for a special police force to investigate the offences specified by the central government through the Gazette notification.

Section 6

Section 6 of the Delhi Special Police Establishment Act, 1946 makes the consent of the states mandatory for the CBI to exercise its power and jurisdiction in the state.  The government of Chhattisgarh has revoked section 6 of the Delhi Special police investigation act to withdraw the general consent.

Reasons for Withdrawal

The government of Chhattisgarh has cited the following reasons for the withdrawal:

  • The credibility and integrity of the CBI have been compromised under the present central government.
  • As a result of the free hand to CBI to operate in the state, the law and order and state officers were being disturbed.

The CBI is now required to seek permission from the state government before initiating any investigations.

Chhattisgarh has joined the list of West Bengal and Andhra Pradesh which have withdrawn the general consent for CBI to undertake investigations.

Month: Categories: States

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