Why in the News ? The Union government accepted the Sixteenth Finance Commission (FC16) recommendation retaining States’ share at 41% of the divisible tax pool. However, concerns have emerged as the divisible pool’s share in total tax revenues has declined, raising debates about Centre–State fiscal relations and federal balance. Changing Dynamics of Fiscal Federalism in…
Why in the News ? The Union Cabinet has amended the 2020 foreign direct investment (FDI) guidelines under Press Note 3, allowing limited investments from countries sharing a land border with India without prior approval if the beneficial ownership is non-controlling and up to 10%, streamlining the approval process while maintaining regulatory oversight. Cabinet Amendment…
Why in the News ? The Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act, 1955 to prioritise the allocation of natural gas to key sectors such as PNG, CNG, LPG production, and fertiliser plants, introducing a tiered supply framework to ensure uninterrupted availability while maintaining compliance with environmental clearances and…
Why in the News ? The Union Cabinet has approved the final amendments to the Insolvency and Bankruptcy Code (IBC), incorporating recommendations of the Baijayant Panda-led Parliamentary Select Committee. The legislation is expected to be introduced in Parliament, aiming to strengthen India’s corporate insolvency resolution framework. Key Amendments Approved in the Insolvency and Bankruptcy Code:…
Why in the News ? Karnataka’s new alcohol taxation policy and transition toward a market-driven liquor sale system are expected to benefit companies like United Spirits. The policy introduces Alcohol-in-Beverage (AIB) based taxation, potentially encouraging premiumisation in the liquor industry. Karnataka’s New Liquor Policy and Tax Changes: Karnataka is moving from a government-controlled liquor pricing…