Read Current Affairs
- Why in News?
- The Union government has unveiled significant proposals to reform the Goods and Services Tax (GST), marking an important step toward simplification.
- Key Provisions:-
- The plan aims to shift 99% of goods in the 12% bracket to 5% and move 90% of items in the 28% slab to 18%, thereby easing the tax burden on consumers and businesses.
- Rationalising slabs and grouping similar items together will reduce confusion and disputes, while reforms in registration, filing, and refunds promise smoother compliance.
- Although revenue may take an initial hit—especially since the Reserve Bank earlier estimated the average GST rate at 11.6%—the government expects higher consumption and an expanded tax base to compensate.
- States, however, may demand compensation, as their fiscal space could shrink further, especially with petroleum still outside GST. If managed well, 2025 could emerge as a milestone year for both direct and indirect tax reforms, boosting growth and investor confidence.
- Why in News?
- States are expected to scale back off-budget borrowings (OBBs) as part of the broader push for fiscal discipline and transparency. These borrowings, though not reflected in the official budget, have often been used by governments to fund welfare schemes, infrastructure projects, and subsidies without directly adding to the reported fiscal deficit.
- About OBBs:
- Off-budget borrowings refer to loans raised by state-run entities or Public Sector Undertakings (PSUs), which rely heavily on government support through grants, subsidies, and guarantees. Since these liabilities are not directly listed in the state budget, they create the appearance of fiscal prudence.
- Concerns:
- However, such practices mask the true debt burden, reduce transparency, and undermine accountability in public finance. Recognizing these risks, the Centre has been nudging states to bring OBBs onto their balance sheets. Easing dependence on these borrowings is thus crucial for strengthening fiscal credibility and long-term financial sustainability.
- Why in News?
- Global efforts to forge a universal treaty on eliminating plastic pollution continue to falter.
- Key Provisions:-
- At the sixth round of negotiations under the UN Environment Programme (UNEP), divisions persisted on a key question: should ending plastic pollution also mean cutting plastic production itself? While nations accept that items like polythene bags have created a civic and environmental crisis, consensus on stronger action remains elusive. India illustrates the challenge — producing 3.4 million tonnes of plastic waste annually, recycling only 30%, and still struggling despite bans on 20 single-use items. Globally, over 430 million tonnes of plastic are generated each year, much of it short-lived and poorly managed. Mismanaged waste, microplastics, and rising greenhouse gas emissions underline the urgency. Yet many nations resist production cuts, fearing disguised trade barriers. Without trust and genuine dialogue, repeated talks risk stagnation. True progress requires moving beyond rhetoric to credible action at both global and national levels.