02-06-21 Daily-Tamilnadu-TNPSC Current Affairs

With the exact impact of the COVID-19 pandemic on Nadus economy yet to be known this year, the State Government may have to increase its borrowings for managing its fiscal Health.

According to the 15th Finance Commissions recommendations, the Fiscal Deficit has to be within 4% of the Gross State Domestic Product (GSDP) for 2021-22. If the State government goes beyond its planned borrowings, the fiscal deficit is bound to go up, for which it has to seek the Centres approval. As per the Interim Budget presented by the previous AIADMK regime in February, the plan was to borrow 84,686.75 crore, by keeping the fiscal deficit at 3.94% of GSDP.

Under normal circumstances, there will be a certain amount of increase in revenue even in the absence of a hike in taxes or charges. But with the second wave of the pandemic, a fall in revenue looks imminent. For example, as per the Budget Estimates worked out by the government prior to the outbreak of the pandemic in March 2020, the SOTR for 2020-21 was expected to be about 1.34 lakh crore. [It was later revised to 1.09 lakh crore].

As per a provisional estimate, the revenue netted last year was about 1.06 lakh crore. This meant that the gap was about 28,000 crore. It remains to be seen whether the State would see a similar drop in revenue this year as well if the pandemic continues.

The government announced the setting up of an eight-member ministerial panel, headed by Meghalaya chief minister Conrad Sangma, to examine the issue of concessions or exemptions to Covid-19 materials like Vaccines, Oxygen concentrators, hand sanitisers, testing and PPE kits, masks, ventilators and temperaturechecking equipment.

The fitment committee comprising officers had recommended a reduction in rates for a number of items. While nine states wanted Covid materials to be zero-rated (which means the entire value chain to be exempted while providing tax credits to manufacturers), three states pushed for 5%. TheCentrehas said it was not clear if the benefit of lower rates on vaccines or other goods will flow to the end consumer.

A Housing Pricing Index (HPI) on residential property prices in eight cities across the country has been unveiled by real estate portal Housing.com in association with Indian School of Business (ISB).

It seeks to help homebuyers assess the appropriate time to purchase as well as assist sellers know the opportune moment to sell assets. Policymakers and financial analysts can make use of the Index as a reliable estimate to keep track of the trends in the real estate sector, said a release from Housing.com by Union Housing and Urban Affairs Secretary Durga Shanker Mishra.

India Inc has stepped up its efforts to contribute to thecountrys healthcare in the wake of the second wave of Covid.

HDFC Bank, under its Parivartan programme, will set up and enhance medical infrastructure across the country to assist the fight against the coronavirus. The bank said it has committed Rs 100 crore as an initial amount for Covid relief in FY22. This is in addition to the Rs 120 crore the bank spent in FY21.

The Money will be used to set up 20oxygenplants attached to hospitals, three 100-bed Covid-care facilities, isolation centres and provide medical equipment & supplies to over 200 hospitals across the country.

The initiative targets providing 20 lakh patients Home care support for asymptomatic, mild-symptom cases to reduce pressure on the overburdened Health system.