Refrain from OPS, wasteful subsidies, RBI tells states

The RBI report cautions against the return to the old pension scheme, suggesting that it will restrict growth and increase spending. It advises states to refrain from providing non-merit goods and services and subsidies. The report recommends increasing own tax revenue through measures like higher stamp duty and registration fees. It highlights the potential fiscal burden of reverting to OPS from NPS and proposes that the 16th Finance Commission reinstate fiscal efficiency parameters. The report also calls for improvements in tax administration, levies on automobiles, and mechanisms to curb illegal mining.