Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh    </title>
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                            <p style="text-align:justify">-NetworkIdeas.org</p><p style="text-align:justify">India&rsquo;s Constitution puts the bulk of responsibility for the basic goods and services to be provided to citizens on to state governments. That is also why it mandated that independent Finance Commissions be appointed every five years to determine the distribution of tax revenues between Centre and the various states. Successive Finance Commissions (FCs) have also recognised that state governments necessarily require more resources to fulfil their obligations, which is why the share of tax revenues to be devolved to states has been steadily increasing across such Commissions, from 29.5 per cent in the 11th FC to as much as 42 per cent in the 14th FC.</p><p style="text-align:justify">However, while grudgingly accepting the 14th FC&rsquo;s award, which was announced in April 2015, the Modi government moved rather quickly to undermine it. It used the obvious available loophole in the Constitution: while tax revenues are to be shared with the states, cesses and surcharges are exempt. Using this loophole, the central government has been increasing the share of taxes collected through such cesses and surcharges, and therefore reducing the share of states in the total divisible pool. In fact, as Figure 1 shows, the share of the states never reached the mandated 42 per cent even in the peak years of 2016-17; thereafter, it has been suppressed as the central government moved to redirect its additional resource mobilisation to the cesses and surcharges that it could jealously guard as its own. By the current year, the share of these in total tax collections is estimated to be more than 15 per cent, a massive increase from the pre-Modi years.</p><p style="text-align:justify">Please <a href="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co" title="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co">click here</a> to read more.</p><p style="text-align:justify"><em>(This article was originally published in the Business Line on January 25, 2021)</em></p>                                                           
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                            <p style="text-align:justify">-NetworkIdeas.org</p><p style="text-align:justify">India&rsquo;s Constitution puts the bulk of responsibility for the basic goods and services to be provided to citizens on to state governments. That is also why it mandated that independent Finance Commissions be appointed every five years to determine the distribution of tax revenues between Centre and the various states. Successive Finance Commissions (FCs) have also recognised that state governments necessarily require more resources to fulfil their obligations, which is why the share of tax revenues to be devolved to states has been steadily increasing across such Commissions, from 29.5 per cent in the 11th FC to as much as 42 per cent in the 14th FC.</p><p style="text-align:justify">However, while grudgingly accepting the 14th FC&rsquo;s award, which was announced in April 2015, the Modi government moved rather quickly to undermine it. It used the obvious available loophole in the Constitution: while tax revenues are to be shared with the states, cesses and surcharges are exempt. Using this loophole, the central government has been increasing the share of taxes collected through such cesses and surcharges, and therefore reducing the share of states in the total divisible pool. In fact, as Figure 1 shows, the share of the states never reached the mandated 42 per cent even in the peak years of 2016-17; thereafter, it has been suppressed as the central government moved to redirect its additional resource mobilisation to the cesses and surcharges that it could jealously guard as its own. By the current year, the share of these in total tax collections is estimated to be more than 15 per cent, a massive increase from the pre-Modi years.</p><p style="text-align:justify">Please <a href="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co" title="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co">click here</a> to read more.</p><p style="text-align:justify"><em>(This article was originally published in the Business Line on January 25, 2021)</em></p>                                                           
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    <h1 class="cat-box-title">Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh</h1>
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                            <p style="text-align:justify">-NetworkIdeas.org</p><p style="text-align:justify">India&rsquo;s Constitution puts the bulk of responsibility for the basic goods and services to be provided to citizens on to state governments. That is also why it mandated that independent Finance Commissions be appointed every five years to determine the distribution of tax revenues between Centre and the various states. Successive Finance Commissions (FCs) have also recognised that state governments necessarily require more resources to fulfil their obligations, which is why the share of tax revenues to be devolved to states has been steadily increasing across such Commissions, from 29.5 per cent in the 11th FC to as much as 42 per cent in the 14th FC.</p><p style="text-align:justify">However, while grudgingly accepting the 14th FC&rsquo;s award, which was announced in April 2015, the Modi government moved rather quickly to undermine it. It used the obvious available loophole in the Constitution: while tax revenues are to be shared with the states, cesses and surcharges are exempt. Using this loophole, the central government has been increasing the share of taxes collected through such cesses and surcharges, and therefore reducing the share of states in the total divisible pool. In fact, as Figure 1 shows, the share of the states never reached the mandated 42 per cent even in the peak years of 2016-17; thereafter, it has been suppressed as the central government moved to redirect its additional resource mobilisation to the cesses and surcharges that it could jealously guard as its own. By the current year, the share of these in total tax collections is estimated to be more than 15 per cent, a massive increase from the pre-Modi years.</p><p style="text-align:justify">Please <a href="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co" title="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co">click here</a> to read more.</p><p style="text-align:justify"><em>(This article was originally published in the Business Line on January 25, 2021)</em></p>                                                           
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    <br><a href="https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co" class="re" target="_blank">NetworkIdeas.org, 26 January, 2021, https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co</a><div class="clear"></div>
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Home हिन्दी

Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh

Published on Jan 26, 2021   Modified on Jan 27, 2021

-NetworkIdeas.org India’s Constitution puts the bulk of responsibility for the basic goods and services to be provided to citizens on to state governments. That is also why it mandated that independent Finance Commissions be appointed every five years to determine the distribution of tax revenues between Centre and the various states. Successive Finance Commissions (FCs) have also recognised that state governments necessarily require more resources to fulfil their obligations, which is why the share of tax revenues to be devolved to states has been steadily increasing across such Commissions, from 29.5 per cent in the 11th FC to as much as 42 per cent in the 14th FC. However, while grudgingly accepting the 14th FC’s award, which was announced in April 2015, the Modi government moved rather quickly to undermine it. It used the obvious available loophole in the Constitution: while tax revenues are to be shared with the states, cesses and surcharges are exempt. Using this loophole, the central government has been increasing the share of taxes collected through such cesses and surcharges, and therefore reducing the share of states in the total divisible pool. In fact, as Figure 1 shows, the share of the states never reached the mandated 42 per cent even in the peak years of 2016-17; thereafter, it has been suppressed as the central government moved to redirect its additional resource mobilisation to the cesses and surcharges that it could jealously guard as its own. By the current year, the share of these in total tax collections is estimated to be more than 15 per cent, a massive increase from the pre-Modi years. Please click here to read more. (This article was originally published in the Business Line on January 25, 2021)

NetworkIdeas.org, 26 January, 2021, https://www.networkideas.org/featured-articles/2021/01/wrecking-fiscal-federalism/?fbclid=IwAR10F1l40Zu3IbwibbuSa602W4K1iwt1yVcMub-3fWD7In2T29yPagsj9co

Tagged with: Goods and Services Tax GST Collection Comptroller and Auditor General of India CAG Tax Collection 14th Finance Commission Tac Revenue

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