The Reserve Bank of India RBI released the Report titled ldquo State Finances A Study of Budgets of ...........

Economic Affairs Others

The Reserve Bank of India (RBI) released the Report titled “State Finances: A Study of Budgets of 2022-23”. Consider the following statements in this regard:

1. It is an annual publication that provides information, analysis and an assessment of the fi nances of State governments.

2. According to the RBI report, states’ debt is expected to decrease to 29.5% of GDP in 2022-23 compare to 31.1% in 2020- 21.

3. Fiscal Responsibility and Budget Management (FRBM) Review Committee can suggest the state government on fi nancial matter.

Which of the following statements is/are correct?

1 and 2 only

3 only

2 and 3 only

1, 2 and 3

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Explanation:

Correct Option: (d) Explanation: Option (d) is correct. Supplementary notes: State Finances: A Study of Budgets of 2022-23 The Reserve Bank of India (RBI) released the Report titled “State Finances: A Study of Budgets of 2022-23”. It is an annual publication that provides information, analysis and an assessment of the fi nances of State governments for 2022-23 against the backdrop of actual and revised/ provisional accounts for 2020-21 and 2021- 22, respectively. The theme of this year’s Report is “Capital Formation in India - The Role of States”. According to the RBI report, states’ debt is expected to decrease to 29.5% of GDP in 2022-23, compared to 31.1% in 2020-21. However, the report also highlights that this is still higher than the 20% recommended by the Fiscal Responsibility and Budget Management (FRBM) Review Committee in 2018. States are anticipating an increase in nontax revenue, which is generated from sources such as fees, fi nes, and royalties. This increase is likely to be driven by revenue from industries and general services. The report notes that states are expecting to see an increase in revenue from various sources such as State GST, excise taxes, and sales taxes in the 2022-2023 fi scal year.