FICCI welcomes government's decision to give 10% additional funding to the states

FICCI welcomes government's acceptance of Finance Commission's proposal to give 10% additional funding to the states from its divisible resources. This goes to show that the government is committed to strengthen co-operative federalism and ensure better Centre- State financial relations.

We believe that with greater fiscal space, states can meaningfully contribute to the overall growth and development in their regions, thereby adding to the aggregate growth of the nation. This is especially important to ensure balanced regional development by giving more financial leverage to the revenue deficit backward states, said Dr. Jyotsna Suri, President, FICCI.

While such large devolution of revenues could put some strain on Centre's finances, FICCI hopes that government's efforts towards tax reforms and early implementation of GST would facilitate enhancement of overall revenues and enable Centre to eliminate the revenue deficit over the next few years, added Dr. Suri.

 

We are also happy to note that out of the 30 identified Centrally Sponsored Schemes for transfer to states, the government has decided to delink eight schemes. The States will now have the flexibility to implement these schemes as per local needs. This will ensure efficient utilisation of government resources in areas that will contribute towards real development, said Dr. Suri.

Powered by Capital Market - Live News