GST to improve state Finances

Mumbai, MAY 13: RBI has published a report on State Finances:2016-17. Reserve Bank of India said that with the implementation of Goods and Sevices Tax (GST) from 1, 2017, the states will be strengthened fiscally.

The report stated that when GST is in place the states will record a rise in the amount of Tax collected and this will, in turn, help the state top Invest in Manufacturing.

The Central Bank also said that the cooperation between states and center will be increased. The bank also says that to implement GST proper infrastructure and technologies must be required.

Finally, rbI had cautioned states not to implement farmer Loan Waiver policy because it will damage the state economy and will encourage Undiscipline in the farmers.