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Parliamentary Budgetary Process for UPSC
102 notes · updated 1 Nov 2026
In the news
- Gross GST collections increased 23 per cent
Government data revealed a significant 23 per cent increase in gross GST collections for October, driven by domestic sales and import revenues.
- GST Council raises prosecution threshold to ₹5 crore, reduces penalties to ₹10,000
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, decided to increase the prosecution threshold and reduce penalties to enhance trade stability.
- GST Council scraps arrest powers and raises prosecution threshold to ₹5 crore
The GST Council approved scrapping arrest powers for GST officers and raising the prosecution threshold from ₹1 crore to ₹5 crore to ease enforcement.
- GST collections reach ₹12.46 lakh crore as taxable supplies grow 25.8%
Union Minister of Finance Nirmala Sitharaman announced that GST collections reached ₹12.46 lakh crore for the April–September 2026 period, reflecting an 11.6% increase.
- Kerala sets trap: Defaults on local loans mean departmental inspections and fund cuts
The Kerala government revised guidelines for local bodies to ensure fiscal discipline by removing government subsidies for loan repayments on revenue-generating projects.
- Tamil Nadu and Kerala White Papers: Why managing fiscal is a tightrope for State governments
The release of White Papers by Kerala and Tamil Nadu highlights the fiscal strain caused by high debt-to-GSDP ratios resulting from intensive social sector spending.
- The GST regime reached its nine-year milestone with record revenue collection and a transition toward AI-driven risk-based audits and a simplified three-rate structure
The GST regime reached its nine-year milestone with record revenue collection and a transition toward AI-driven risk-based audits and a simplified three-rate structure.
- Damocles’ sword over Kerala’s fortunes
Kerala's high debt-to-GSDP ratio and low capital expenditure are hindering infrastructure investment and fiscal stability.
- Fiscal prudence, the need of the hour for Tamil Nadu’s power utilities
The Tamil Nadu government's public sector undertakings (SPSUs) are facing a debt crisis of ₹3.18 lakh crore, highlighting the fiscal strain of subsidised power distribution.
- Kerala Budget: New ideas weighed down by an old trilemma
Kerala's revised budget presented by CM V.D. Satheesan balances new developmental themes like the 'Silver Economy' and 'Blue Economy' against persistent fiscal constraints and welfare obligations.
- Kerala faces burden of ₹5.07-lakh crore liabilities; fiscal structure under ‘serious’ strain, says White Paper tabled by CM
Chief Minister V.D. Satheesan tabled a white paper in the Kerala State Assembly highlighting the state's fiscal strain caused by ₹5.07-lakh crore in outstanding liabilities and high interest payments.
- Kerala’s development decade
The Hindu highlights Kerala's unprecedented economic growth since 2016, attributing it to innovative financing and formal planning despite Union Government financial constraints.
- Parliament Budget Session LIVE: Lok Sabha to take up CAPF Bill 2026 today
The Lok Sabha is scheduled to consider the Central Armed Police Forces (General Administration) Bill, 2026, which proposes specific deputation quotas for high-ranking officer positions.
- Parliament Budget Session LIVE: Rajya Sabha takes up Question Hour
The Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which is now moving to the Rajya Sabha for consideration.
- Economic Stabilisation Fund to help government respond to global challenges: Sitharaman
Finance Minister Nirmala Sitharaman announced the creation of a ₹1 lakh crore Economic Stabilisation Fund to provide fiscal headroom for India to respond to global challenges.
- SFC recommends 5% of GST revenue allocation to municipal bodies, including GBA corporations
The Fifth State Finance Commission recommended that the Karnataka government earmark at least 5% of its total GST revenue generated in cities to urban local self-governments
- A gradual fiscal correction
The Hindu analyzed Andhra Pradesh's fiscal trajectory (2023-24 to 2026-27), highlighting a shift toward increased capital expenditure and internal resource mobilization despite persistent primary deficits.
- Power sector reforms: Kerala receives nod for a further ₹2,924-crore borrowing space
The Union Finance Ministry sanctioned an additional ₹2,924 crore borrowing space for Kerala to implement power sector reforms.
- Karnataka Budget 2026-27: Share of Central funds decreasing by the year adds to fiscal pressure
The Medium Term Fiscal Plan (MTFP) for Karnataka's 2026-27 budget reveals a declining share of Central transfers in the state's revenue receipts, increasing fiscal pressure.
- Subsidies bill goes up by over ₹9,200 crore
The Karnataka government's budget estimates for 2026-27 show a subsidy bill increase of over ₹9,200 crore due to expanded beneficiary coverage and higher benefit levels.
- Karnataka Budget 2026: Highlights
The Karnataka government announced the 2026 Budget featuring infrastructure projects like a second Bengaluru airport and welfare measures for marginalized communities.
- Centre clears ₹2,924-crore extra borrowing space for Kerala tied to State’s power reforms, says Electricity Minister K. Krishnankutty
The Centre approved an additional ₹2,924 crore borrowing space for Kerala, linked to the state's power sector reforms.
- Haryana CM Nayab Singh Saini presents ₹2.23-lakh cr Budget for 2026-27
Haryana CM Nayab Singh Saini presented the ₹2.23 lakh crore budget for 2026-27, featuring a World Bank-funded clean air project and a new agricultural power distribution company.
- GST mop-up grows 8.1% to over ₹1.83 lakh crore in February
Gross GST collection reached over ₹1.83 lakh crore in February 2026, showing an 8.1% year-on-year increase driven by import revenue and domestic sales.
- Kerala economy: From impressive social gains to mounting fiscal strain
The Hindu highlighted the transition of Kerala's economy from the 'Kerala Model' of social welfare to current challenges of fiscal strain and youth unemployment.
- Chhattisgarh Budget 2026: ₹1.72 lakh crore allotted for 2026-27; new financial scheme for girls
Finance Minister O.P. Choudhary presented the Chhattisgarh Budget 2026-27, allocating ₹1.72 lakh crore with a focus on inclusive growth and the Rani Durgavati Scheme for girls.
- Gujarat unveils ₹4.08 lakh crore budget for tourism, AI, sports infrastructure
Gujarat Finance Minister Kanubhai Desai presented a record-breaking ₹4.08 lakh crore state budget for the 2026–27 fiscal year focusing on AI, tourism, and sports infrastructure.
- GST rationalisation likely to impact Karnataka’s Budget size
The Karnataka government anticipates a ₹16,000 crore revenue shortfall due to GST rate rationalization, potentially reducing the 2025-2026 budget size by ₹10,000 crore.
- Increasing reliance on off-budget borrowings casts a shadow
Andhra Pradesh's 2026-27 budget revealed a heavy reliance on off-budget borrowings through state-backed guarantees to fund essential machinery and infrastructure.
- Government treading a fiscal tightrope
Andhra Pradesh Finance Minister Payyavula Keshav presented the 2026–27 budget, highlighting significant structural strain on state finances due to high revenue and fiscal deficits.
- Uttar Pradesh presents ₹9.13 lakh crore Budget for 2026-27, outlay up 12.2%
Uttar Pradesh Finance Minister Suresh Khanna presented the ₹9.13 lakh crore budget for FY 2026-27, focusing on education, health, and agriculture as primary growth drivers.
- Kerala Public Expenditure Review Committee calls for revenue boost, spending rationalisation for long-term growth
The Kerala Public Expenditure Review Committee (KPERC) released its first report for the 2021-22 to 2023-24 period
- Union Budget is a development roadmap for next 25 years, says Union Minister Jitendra Singh
Union Minister Jitendra Singh described the Union Budget 2026-27 as a 25-year development roadmap aimed at achieving 'Viksit Bharat' by 2047.
- Union Budget 2026 to India-EU FTA: This week in top charts
Union Finance Minister Nirmala Sitharaman presented the ninth Union Budget for the fiscal year 2025-26, outlining expenditure plans and fiscal deficit projections.
- Bihar Assembly: Nitish Kumar Govt. tables ₹3.47 lakh crore Budget
The Nitish Kumar government presented the Bihar State Budget for the upcoming fiscal year, emphasizing a focus on knowledge, science, and aspirations.
- Debating Union Budget 2026 as turning point or tinkering
The Union Budget 2026-27 was presented as a strategic response to geopolitical turmoil, aiming to reduce import dependence on China through domestic manufacturing and electronics production.
- Industry bodies welcome growth-oriented Budget announcements
Finance Minister Nirmala Sitharaman presented the ninth consecutive budget, which industry bodies welcomed for its focus on infrastructure, semiconductor self-reliance, and inclusive growth.
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Key facts
- Body: GST Council — chaired by the Union Finance Minister
- Concept: Judicial discretion — minimum punishments removed to allow for judicial discretion
- Concept: Prosecution threshold — increased from Rs 1 crore to Rs 5 crore
- Concept: General penalties — reduced from Rs 25,000 to Rs 10,000
- Event: 57th GST Council meeting — approved the removal of arrest powers and formed an ITC protection committee note →
- Figure: 1.71 crore — Approximate number of GST registrations by August note →
Practice · 4 questions
With reference to GST collections in October, consider the following statements:
- Gross GST collections reached over Rs 2.31 lakh crore.
- The net GST collections after refunds were over Rs 1.50 lakh crore.
- The Integrated GST component exceeded Rs 1.37 lakh crore.
Which of the statements given above is/are correct?
- (a)1 only
- (b)3 only
- (c)1 and 2 only
- (d)1 and 3 only
Answer
(d) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: Net collections were over Rs 2.03 lakh crore. Note →
What is the revised amount for general penalties for GST violations as approved by the Council?
- (a)₹5,000
- (b)₹20,000
- (c)₹15,000
- (d)₹10,000
Answer
(d) ₹10,000 — The note states that general penalties for GST violations were reduced from ₹25,000 to ₹10,000. Note →
With reference to the recent GST Council reforms, consider the following statements:
- The prosecution threshold for GST offences has been increased to Rs 5 crore.
- The GST Council has scrapped the arrest powers of GST officers.
- General penalties under the GST regime have been increased to Rs 25,000.
Which of the statements given above is/are correct?
- (a)1 only
- (b)1 and 2 only
- (c)1 and 3 only
- (d)1, 2 and 3
Answer
(b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: General penalties were reduced from Rs 25,000 to Rs 10,000. Note →
With reference to GST collections and registrations, consider the following statements:
- Taxable supplies grew by 35.8% between October 2025 and July 2026.
- GST registrations reached approximately 1.71 crore by August.
- Gross GST collections reached ₹12.46 lakh crore for the period April–September 2026.
Which of the statements given above is/are correct?
- (a)1 only
- (b)1 and 2 only
- (c)2 and 3 only
- (d)1, 2 and 3
Answer
(c) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: Taxable supplies grew by 25.8%. Note →
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