<h1>RBI Report: GST's Role in Economic Growth, Inflation, and Fiscal Consolidation; Highlights Cooperative Federalism and Debt Sustainability.</h1> The Reserve Bank of India released its annual report on state finances, focusing on the Goods and Services Tax (GST) for 2016-17. The report highlights GST's potential to impact economic growth, inflation, government finances, and external competitiveness. It emphasizes the importance of cooperative federalism between the central and state governments and suggests GST as a path for fiscal consolidation without reducing productive expenditure. The report calls for a robust dispute resolution mechanism and IT infrastructure support through the goods and services tax network. It also stresses the importance of debt sustainability and resource devolution for states' financial health.