RBI Grade B Current Affairs — 1 August 2026

State GST (SGST) collections have grown faster than nominal GDP growth, indicating strengthened revenue mobilisation under the GST regime. This buoyancy reflects improved compliance, wider tax base, and digitisation of returns. GST, introduced in July 2017, subsumed over a dozen central and state taxes. States receive SGST on intra-state supplies plus their share of IGST on inter-state transactions. Enhanced collections reduce states' dependence on central transfers and fiscal deficit financing, improving macroeconomic stability.

GST buoyancy — defined as the ratio of percentage change in tax revenue to percentage change in GDP — exceeding 1.0 means tax collections grow faster than the economy. When SGST buoyancy exceeds 1, states gain fiscal space without raising tax rates, a structurally positive development.

The GST architecture matters for exam purposes: CGST goes to the Centre, SGST to states on intra-state supplies, and IGST (on inter-state and imports) is split between Centre and states based on destination principle. The GST Council, a constitutional body under Article 279A, recommends rates and policy changes, with a three-fourths majority required for decisions.

For monetary policy transmission, higher state revenues reduce the need for market borrowings (SDL — State Development Loans), which can moderate long-term yields and ease credit conditions. For NABARD, stronger state finances improve viability of state-sponsored agricultural schemes and NABARD-refinanced projects.

Fiscal federalism dimensions — the 14th and 15th Finance Commission devolution ratios, compensation cess mechanism (which ended March 2026), and States' Own Tax Revenue (SOTR) — are key static anchors the examiner regularly pairs with GST revenue data. The five-year GST compensation guarantee to states ended in June 2022; states now operate without the compensation safety net, making organic buoyancy even more significant.

The DAANVEER initiative was launched to boost digital infrastructure across India's Gram Panchayats by encouraging voluntary donations of digital assets — devices, connectivity equipment, and related resources — to rural local bodies. The scheme channels CSR funding and individual philanthropy into last-mile digital connectivity for villages. It targets bridging the urban-rural digital divide by strengthening panchayat-level technology capacity, enabling e-governance delivery, and supporting digital public infrastructure rollout at the grassroots level across all states.

DAANVEER operationalises a demand-side solution to rural digital exclusion — rather than relying solely on government capex, it creates a structured donation pipeline where corporates, institutions, and individuals can contribute digital assets directly to Gram Panchayats. This is significant because India's Gram Panchayats (approximately 2.5 lakh) remain the last-mile governance unit for welfare delivery, but many lack functional digital infrastructure.

For exam purposes, understand three layers: (1) Policy problem — rural digital divide undermines e-governance delivery of welfare schemes, financial inclusion, and land records digitisation; (2) Economic mechanism — philanthropy and CSR capital are redirected toward public digital infrastructure, reducing fiscal burden; (3) Institutional context — Panchayati Raj institutions are constitutional bodies under Part IX (Articles 243–243O), and strengthening their digital capacity directly supports the devolution of functions envisaged in the 11th Schedule.

The initiative aligns with broader national digital infrastructure programmes — BharatNet for broadband connectivity, Common Service Centres (CSCs) for service delivery, and the Digital India programme's pillar of digital empowerment of citizens. For NABARD aspirants, rural digital infrastructure enables digital agricultural credit delivery, KCC digitisation, and Jan Dhan-Aadhaar-Mobile (JAM) trinity effectiveness. For RBI aspirants, it connects to last-mile financial inclusion and BC (Business Correspondent) network functionality in rural areas.