Kerala's Public Expenditure Review Committee has flagged a persistent and puzzling shortfall in its share of Integrated GST (IGST) settlements, despite being a consumption-heavy state. This indicates a structural flaw in the GST compensation mechanism, affecting state revenues and highlighting issues in federal fiscal transfers that are crucial for UPSC Economy and Polity sections.
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- ›Committee & Report: 7th Kerala Public Expenditure Review Committee (KPERC), 1st report (2021-22 to 2023-24)
- ›Kerala's Trade Deficit: Approximately ₹1 lakh crore (₹1 trillion)
- ›Target this Data: IGST/SGST ratio for Kerala (1.2% in 2023-24) and the trade deficit (~₹1 lakh crore).
- ›Target this Nodal Body: The Kerala Public Expenditure Review Committee (KPERC) and the constitutional body - GST Council (Article 279A).
- ›Target this Legal Point: The Integrated Goods and Services Tax (IGST) Act, 2017, which governs inter-state transactions.
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