CURRENT AFFAIRS

Detailed explanation-1: -Synopsis. As many as 21 states have backed the first option, entailing Rs 97, 000 crore borrowing, more than the requisite number needed to pass a resolution in the GST Council if it is put to vote. This is bound to put pressure on the Opposition-ruled states, which have rejected both the options.

Detailed explanation-2: -22 states, and 2 Union Territories with Legislatures (Delhi and Puducherry) have already passed their respective State GST Bill in their State Assemblies.

Detailed explanation-3: -The Centre has set the borrowing limit at 3.5% of GSDP for FY23 with another 50 bps window if states carry out reforms in the power sector, taking the total space to 4%.

Detailed explanation-4: -Where does the govt borrow from? It borrows from the market, small savings funds, state provident funds, external assistance and short-term borrowings. Market borrowing, however, is the major source to finance the fiscal deficit.

Detailed explanation-5: -The single pan-India tax will replace the excise duty, countervailing duty and service tax, as also state taxes such as value-added tax, entry tax and luxury tax. Assam is the first state of India to pass GST Bill.