-Livemint.com Overall, we find that social sector investments have in fact increased across all states, except Bihar In February 2015, the Government of India accepted the Fourteenth Finance Commission’s (FFC) recommendation to empower states with greater expenditure discretion. The states’ share in Union taxes, therefore, increased from 32% to 42%. While the move holds the promise to reform India’s centralized, one-size-fits-all approach to financing the social sector, the process adopted by...
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Unshackling the states from central schemes
-Livemint.com A large number of central schemes end up curbing the autonomy of states In some ways, the thunder of finance minister Arun Jaitley’s first full-year budget was stolen by the Fourteenth Finance Commission (FFC) report. Released just a few days before the budget speech was made, the FFC brought in significant changes in state-centre finances by increasing the devolution to states from 32% to 42% of the net Union tax...
More »For a truer decentralisation -M Govinda Rao
-The Hindu Despite its uneven history in India, decentralisation is vital to strengthen participatory democracy, facilitate responsive governance and enable public service delivery. Much has been written on decentralisation in India though, on the ground, there is very little to show despite the 73rd and 74th Constitutional amendments. The rationale for decentralisation comes from the need to strengthen participatory democracy, facilitate responsive governance, ensure greater accountability and enable public service delivery according to...
More »Centre slashes aid for 18 social sector schemes -Brajesh Kumar
-Hindustan Times The Centre has decided to slash its share of funds in about 18 social sector schemes including flagship education programme Sarva Shiksha Abhiyan (SSA) in a cutback that has been criticised by states. The central government and states would contribute equally for programmes such as SSA, Rashtriya Uchchtar Shiksha Abhiyan (RUSA) and Rashtriya Madhyamik Shiksha Abhiyan (RMSA), a departure from the previous 65%-35% formula. Sources said the department of economic affairs...
More »Slimming Down -Sudha Pillai
-The Indian Express Reduce Centrally sponsored schemes, specify their objectives and timelines. A Niti Aayog taskforce chaired by Madhya Pradesh Chief Minister Shivraj Singh Chouhan has apparently recommended that 25 per cent of the funds under Centrally sponsored schemes (CSS) be made available to states as untied monies. If this recommendation is accepted, states would receive a total of Rs 42,000 crore during 2015-16 itself. This recommendation should be viewed in...
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