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<p style="text-align:justify">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.</p>
<p style="text-align:justify">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.</p>
<p style="text-align:justify">Please <a href="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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LATEST NEWS UPDATES | Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh </title>
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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..."/>
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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..." />
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<a href="https://im4change.in/latest-news-updates/wrecking-fiscal-federalism-cp-chandrasekhar-and-jayati-ghosh.html" target="_blank">Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh</a>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-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...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-Scroll.in
Attention came to be fixed on protestors hurling flags on top of the Red Fort, eclipsing scenes of Delhi residents welcoming farmers to the city.
When the first wave of tractors triumphantly drove down the national highway north of Delhi around 9 am on January 26,...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-TheWire.in
The pandemic and lockdown threw existing budgetary calculus completely out of line. But that provides an opportunity too.
In December 2020, talking at a CII meet, finance minister Nirmala Sitharaman reportedly stated: “100 years of India wouldn’t have seen a budget being made post-pandemic like this”.
Was...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Indian Express
'Extremely severe' cyclone Fani affected 28 million people, killing 90 people in India and Bangladesh, and causing economic loss to the tune of US$8.1 billion, the report added.
India ranks seventh among countries most affected in 2019 by climate change, according to the Global...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Hindu
Keynesian economics offers guidelines for preparing the Budget
The Great Depression wrecked the economies of the U.S. and Europe. In the words of Jonathan Alter, when Franklin Roosevelt became the American President in 1933, he was told: “Mr. President, if your programme succeeds you would...</p>
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<a href="https://im4change.in/latest-news-updates/wrecking-fiscal-federalism-cp-chandrasekhar-and-jayati-ghosh.html" target="_blank">Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh</a>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-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...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-Scroll.in
Attention came to be fixed on protestors hurling flags on top of the Red Fort, eclipsing scenes of Delhi residents welcoming farmers to the city.
When the first wave of tractors triumphantly drove down the national highway north of Delhi around 9 am on January 26,...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-TheWire.in
The pandemic and lockdown threw existing budgetary calculus completely out of line. But that provides an opportunity too.
In December 2020, talking at a CII meet, finance minister Nirmala Sitharaman reportedly stated: “100 years of India wouldn’t have seen a budget being made post-pandemic like this”.
Was...</p>
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<a href="https://im4change.in/latest-news-updates/india-seventh-on-index-of-countries-impacted-by-climate-change-in-2019.html" target="_blank"><strong style="" >India seventh on index of countries impacted by climate change in 2019 </strong></a>
<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Indian Express
'Extremely severe' cyclone Fani affected 28 million people, killing 90 people in India and Bangladesh, and causing economic loss to the tune of US$8.1 billion, the report added.
India ranks seventh among countries most affected in 2019 by climate change, according to the Global...</p>
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<a href="https://im4change.in/latest-news-updates/budgeting-in-a-time-of-crisis-tca-ramanujam.html" target="_blank"><strong style="" >Budgeting in a time of crisis -TCA Ramanujam</strong></a>
<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Hindu
Keynesian economics offers guidelines for preparing the Budget
The Great Depression wrecked the economies of the U.S. and Europe. In the words of Jonathan Alter, when Franklin Roosevelt became the American President in 1933, he was told: “Mr. President, if your programme succeeds you would...</p>
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<a href="https://im4change.in/latest-news-updates/wrecking-fiscal-federalism-cp-chandrasekhar-and-jayati-ghosh.html" target="_blank">Wrecking Fiscal Federalism -CP Chandrasekhar and Jayati Ghosh</a>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-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...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-Scroll.in
Attention came to be fixed on protestors hurling flags on top of the Red Fort, eclipsing scenes of Delhi residents welcoming farmers to the city.
When the first wave of tractors triumphantly drove down the national highway north of Delhi around 9 am on January 26,...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-TheWire.in
The pandemic and lockdown threw existing budgetary calculus completely out of line. But that provides an opportunity too.
In December 2020, talking at a CII meet, finance minister Nirmala Sitharaman reportedly stated: “100 years of India wouldn’t have seen a budget being made post-pandemic like this”.
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Indian Express
'Extremely severe' cyclone Fani affected 28 million people, killing 90 people in India and Bangladesh, and causing economic loss to the tune of US$8.1 billion, the report added.
India ranks seventh among countries most affected in 2019 by climate change, according to the Global...</p>
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<br><small>January 26, 2021</small>
<p style="padding-top: 6px;">-The Hindu
Keynesian economics offers guidelines for preparing the Budget
The Great Depression wrecked the economies of the U.S. and Europe. In the words of Jonathan Alter, when Franklin Roosevelt became the American President in 1933, he was told: “Mr. President, if your programme succeeds you would...</p>
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-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...
-Scroll.in
Attention came to be fixed on protestors hurling flags on top of the Red Fort, eclipsing scenes of Delhi residents welcoming farmers to the city.
When the first wave of tractors triumphantly drove down the national highway north of Delhi around 9 am on January 26,...
-TheWire.in
The pandemic and lockdown threw existing budgetary calculus completely out of line. But that provides an opportunity too.
In December 2020, talking at a CII meet, finance minister Nirmala Sitharaman reportedly stated: “100 years of India wouldn’t have seen a budget being made post-pandemic like this”.
Was...
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'Extremely severe' cyclone Fani affected 28 million people, killing 90 people in India and Bangladesh, and causing economic loss to the tune of US$8.1 billion, the report added.
India ranks seventh among countries most affected in 2019 by climate change, according to the Global...
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Keynesian economics offers guidelines for preparing the Budget
The Great Depression wrecked the economies of the U.S. and Europe. In the words of Jonathan Alter, when Franklin Roosevelt became the American President in 1933, he was told: “Mr. President, if your programme succeeds you would...
