Topic: Reports and Indices
1. According to an RBI report, the fiscal outlook for Indian States is favorable for the current fiscal year due to strong domestic economic activity.
- According to the report, states managed to keep the increase in revenue expenditures to 15% between April and October of FY25.
- This is less than the 19.2% full-year budget estimate.
- States' revenue receipts moderated by 0.30 percentage points to 13.3% of GDP in FY24, according to the provisional accounts (PA).
- The Center's grants-in-aid fell sharply, which was the main cause of this drop in states' revenue receipts.
- Both own tax revenue and tax transfers from the Center increased, which improved tax collections.
- Since the introduction of the GST, states with a history of low tax-to-GSDP ratios have seen a significant improvement in revenue mobilization.
- As a result, there is now reduction in inter-State disparities in tax collection.
- With the help of the Center's 50-year interest-free loans, the States' capital expenditures are anticipated to accelerate in the second half of the year.
Topic: Miscellaneous
2. India's main supplier of critical minerals is China.
- China is in the top three for at least 15 of the 24 minerals that the Mines Ministry has recognised.
- For the majority of these minerals, India remains the net importer.
- China's proportion of these minerals ranges from 72% (for both rare earth elements and raw titanium supplies) to 99% (for potassium nitrates).
- With a 66% market share, China is the biggest supplier of artificial graphite.
- For beryllium, cadmium, tellurium, rhenium, and natural graphite, China is the second-largest supplier.
- Gallium, indium, niobium, selenium, tin, vanadium, and zirconium are among the other minerals that India still imports.
- For the majority of the critical minerals, India is a net importer.
- With phosphorous net imports highest at ₹12,648 crore, the net import bill for FY24 is almost ₹30,000 crore.
Topic: Indian Economy/Financial Market
3. In a domestic SLB issued by NDR InvIT, IFC has invested $75 million (₹630 crore).
- This is India's first warehouse InvIT to issue a sustainability-linked bond (SLB).
- This SLB is the nation's first to be issued by any InvIT.
- The goal of this strategic investment is to improve sustainable, high-quality warehouse infrastructure.
- The funding is intended to help NDR InvITs expand its storage operations.
- It will support EDGE (Excellence in Design for Greater Efficiencies) Certification, an international green building certification system by IFC.
- NDR InvIT is an Infrastructure Investment Trust (InvIT) sponsored by NDR Warehousing Private Ltd.
- International Finance Corporation (IFC) is a member of the World Bank Group. It was formed in 1956. It is headquartered in Washington, US.
Topic: RBI
4. A monetary penalty of ₹27.30 lakh has been imposed by RBI on IndusInd Bank for violation of regulatory norms.
- RBI imposed a monetary penalty of ₹20 lakh on Manappuram Finance for violation of regulatory norms.
- RBI found that certain savings deposit accounts were opened by IndusInd Bank in the name of ineligible entities.
- Manappuram Finance did not verify PAN of customers from verification facility of the issuing authority at the time of customer acceptance.
- Manappuram Finance also allotted multiple identification codes to customers in place of a Unique Customer Identification Code for each customer.
Topic: Banking System
5. A bond issuance of ₹10,000 crore for affordable housing and infrastructure was approved by Bank of Baroda.
- During fiscal year 2025, this initiative will be implemented in one or more tranches.
- Depending on feasibility studies, it may be extended beyond that.
- Through the private placement of infrastructure bonds (long-term bonds), Punjab & Sind Bank (PSB) raised ₹3,000 crore.
- Against the ₹500 crore base issue size, the bank received bids totaling ₹6,031 crore.
- At an annual coupon rate of 7.74 percent, it has agreed to accept bids of ₹3,000 crore.
- The bonds have a face value of ₹1 lakh each and are taxable, redeemable, subordinated, unsecured, and non-convertible debentures.
Topic: Taxation
6. As of December 17, gross direct tax revenue for 2024–25 had increased by 20.32% year over year to ₹19.21 lakh crore.
- Higher refunds of ₹3.39 lakh crore contributed to a 16.45% increase in net collection in 2024–25 as on December 17 to ₹15.82 lakh crore.
- As of December 17, 2024, gross corporate tax revenue for FY 2024–25 was ₹9,24,693 crore, representing an annual growth of 16.92%.
- As of December 17, 2023, corporate refunds increased 70.32% to ₹1,82,086 crore from ₹1,06,904 crore in FY2024.
- Compared to ₹7,81,737 crore in the same period previous year, gross non-corporate tax increased by just over 22% to ₹9,53,871 crore in 2024–25 (up to December 17).
- Individual income tax revenue is primarily included in gross non-corporate tax.
- In 2024–2025, the tax department issued refunds of ₹1,56,792 crore.
- Compared to the ₹1,30,901 crore that was reimbursed during the same period previous year, this represents a rise of almost 19.78%.
- As of December 17, 2024–2025, the net non-corporate tax had increased 22.47% to ₹7,97,080 crore.
- Compared to November 2023, when gross GST income stood at ₹1,67,929 crore, November 2024 saw an 8.5% increase to ₹1,82,269 crore.
- After refunds, net collection increased by 11.1% to ₹1,63,010 crore from ₹1,46,786 crore.
Topic: MoUs/Agreements
7. Central government and the Asian Development Bank (ADB) signed a loan of 42 million dollars.
- This financing is intended to promote coastal preservation and boost community resilience in Maharashtra.
- ADB funding will contribute to the restoration and stabilisation of Maharashtra's coastline.
- ADB funding will also contribute to the protection of coastal populations' livelihoods.
- ADB will assist the Maharashtra Maritime Board in increasing its capability for shore management planning, including the development of a coastal infrastructure management unit.
- The initiative will help stakeholders build capacity in gender equality and social inclusion, coastal management, and livelihood activities.
Topic: Indian Economy/Financial Market
8. India’s coal imports declined 3.1% in FY 2024-25.
- India imported 149.39 million tonnes (MT) of coal between April and October of FY 2024–25.
- India’s imports in April and October of FY 2024–25 declined 3.1 percent from 154.17 MT during the same period in FY 2023–2024.
- A rise in domestic coal production was cause for this decline, according to data released by the Ministry of Coal.
- Compared to April-October 2023, the non-regulated sector (apart from power) saw decline of 8.8% during April-October 2024.
- This decrease demonstrates India's resolve to become self-sufficient in coal production and less dependent on imports.
- Between April and October of 2024, coal production increased by 6.04 percent to 537.57 MT from 506.93 MT during the same period in FY 2023–2024.
Topic: Indian Economy/Financial Market
9. Ind-Ra projected the Indian economy to grow by 6.6% in FY26.
- On 18 December, India Ratings and Research (Ind-Ra) forecasted a 6.6% growth for the Indian economy in 2025–26, an increase from 6.4% in the current fiscal year.
- Ind-Ra expects investments to remain a major growth driver for the Indian economy in FY26, as they were in FY22 and FY24.
- GDP growth till FY24 was impacted by the impact of COVID-19, with base effects on quarterly growth rates.
- Ind-Ra observed that the Indian economy is experiencing monetary, fiscal, and external tightening.
- According to the agency, although monetary conditions are expected to ease, fiscal and external tightening is likely to continue in FY26.
- Ind-Ra said if the dollar continues to strengthen, growth and inflation forecasts could be impacted by any tariff war and capital outflows.
- Ind-Ra expects retail inflation to average 4.4% in FY26, lower than the 4.9% forecast for FY25.
- Ind-Ra projects the merchandise trade account to remain in deficit at $308 billion in FY26, compared to $277.4 billion in FY25 and $244.9 billion in FY24.
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