Page 2 - Finance Commission

Experts call for civil service overhaul as govt pulls back on lateral hires

N K Singh, echoing similar sentiment said that the necessity of a permanent civil service needs to be put on the drawing board while ensuring that stability is not jeopardised

Budget 2024: FM exhorts states to take up next-gen reforms agenda

The final report of the 15th Finance Commission had recommended transfer of 41 per cent of central taxes to the states after two Union Territories were carved out of Jammu and Kashmir

Centre denies Bihar's 'special category' status; no new designation allowed

The Centre said that no new states are being awarded 'special category' status at present, as the Indian Constitution does not accommodate such classification

CM Sai seeks special grants for Chhattisgarh from 16th Finance Commission

Chief Minister Vishnu Deo Sai on Thursday sought special central grants for Chhattisgarh, citing its large tribal population, challenging geographical conditions and Naxal activities in parts of the state, at a meeting held with a delegation of the 16th Finance Commission, said a government official. He stressed that additional financial resources are necessary to bring Chhattisgarh, which came into existence in November 2000, on par with developed states, said the official. During the meeting here with the delegation of the central panel led by its chairman Arvind Panagariya, Sai highlighted that Chhattisgarh is a newly-formed state with a large tribal population and faces challenging geographical conditions. It is also affected by Naxal activities, the CM told the delegation, according to the official. The Chief Minister informed the commission about rapid development works being carried out in Naxal-affected areas and effective measures being taken to curb Maoist activities, he

16th Finance Commission constitutes five-member advisory council

The finance commission, as per the ToR, would also suggest measures needed to augment the Consolidated Fund of a State to supplement the resources of panchayats and municipalities

Revenues of top 18 states to grow 8 to 10% this financial year: CRISIL

Revenues of top 18 states, which account for 90 per cent of India's gross state domestic product, are likely to grow at a pace of eight to 10 per cent during the current financial year at Rs 38 lakh crore, according to a CRISIL Ratings report. Last fiscal, the revenues of the 18 states grew by seven per cent, it said. The growth will be primarily driven by robust GST collections and devolution of finances from the Centre, which comprise around 50 per cent of the aggregate state revenues, according to the report. It said while revenue on liquor sales, which is ten per cent of the states' revenues, is expected to remain stable, collections of sales tax imposed on petroleum products and grants recommended by the 15th Finance Commission will be modest. Senior director of CRISIL Ratings Anuj Sethi said that the biggest impetus to revenue growth will continue to come from aggregate state GST collections and also from improved tax compliance and greater formalisation of the economy. Cent

India faces high debt, but sustainable for now: NCAER director-general

At nearly 82 per cent of GDP, India's public debt is very high, but the country doesn't face debt sustainability issue on account of high growth rate and higher share of local currency debt, NCAER Director General Poonam Gupta has said. Participating in an event organised by NCAER, Gupta said India's high debt levels are sustainable for now because of higher real or nominal GDP and as most of the debt is held in rupee. The states together hold one-third of the total debt, and in the 'business as usual' situation, their debt levels will only increase further over the next five years, Gupta said. "In a handful of states like Punjab and Himachal Pradesh, Debt-to-GDP ratio could increase by 50 per cent," Gupta said, adding that the states, including the most indebted ones, also don't face sustainability issue as they have implicit guarantee of the Centre and as states cannot hold debt in foreign currency or floating rate. Drawing a comparison between Punjab, one of the most indebted ..

Overdue Census

The delay is disturbing

16th FC Chair Panagariya calls for permanent data portal for continuity

He said that each finance commission has to start the work on data afresh and a data portal will resolve that issue and bring continuity

'Finance Commission to tackle issues of freebies, green cover compensation'

The 16th Finance Commission would address the issues pertaining to the distribution of freebies and compensation for providing green cover, Chairman Arvind Panagariya said on Monday. Speaking with reporters here after deliberations with the Himachal Pradesh government, Panagariya said that expectations and needs of the state have been discussed and a 90-slide presentation was given by the officials which emphasized that the cost of everything is much higher in the state due to its difficult terrain. Replying to a question, the chairman said, "The issue of freebies would also be addressed by the commission as we are aware that freebies have proliferated and there is a competition among the states and the political parties to give freebies.. It is pertinent to mention that the Congress government in the state had promised to give Rs 1,500 per month to women in the age bracket of 18 to 59 years in its poll manifesto released on the eve of the last assembly polls held in 2022. He said

Strong economic base to help new govt make India a developed nation by 2047

India's world record beating economic growth rate together with robust tax revenues, a fast expanding digital and financial infrastructure and a strong manufacturing sector will give the new government a base for unleashing next generation reforms that may make the country a developed nation by 2047. The new government will however have to tackle with problems like unemployment and rural distress, which seemed to have played a major role in voting pattern in states like Uttar Pradesh, while also keeping inflation under control. Given that no party, including BJP, have a clear majority of its own, tough reforms like big ticket privatisation and labour law reforms may take a backseat. As per the available trends, BJP is likely to win about 240 seats in a 543- member Lok Sabha. It would have to rely on its allies like TDP and JDU to form the next government. The new government will have to build upon the 8.2 per cent GDP growth recorded in 2023-24 and carry on with the reforms to make

India could be the third largest economy by 2026-27, says Arvind Panagariya

Panagariya stressed that in order to achieve this, it was important to reform labour laws and for markets to release capital to more labour-intensive industries

16th Finance Commission invites suggestions on its ToR, general approach

The Commission is also mandated to review the present arrangements on financing Disaster Management initiatives, with reference to the funds constituted under the Disaster Management Act, 2005

Decentralisation: India's struggle with persistent challenges

To push the decentralisation project forward, the first step is to create and distribute information on the activities and finances of local bodies

An idea for the next government

Swift delivery of justice will improve the investment climate, increase growth potential, and enhance the overall quality of development

Centre appoints Manoj Panda as member of 16th Finance Commission

Panda's research areas span monitoring and analysis of macro-economic trends and prospects, evaluation of alternative trade and fiscal policy options from the point of view of growth and distribution

The North-South divide: The 'fiscal injustice' rhetoric is biased

It should not be forgotten that in the 1950s and 1960s, the North Indian states subsidised Southern and Western India as part of the cooperative model of nation-building

Under-employment a problem for India: Panagariya as he pitches for reforms

Pitching for labour reforms, the chairman of the 16th Finance Commission and former NITI Aayog Chairman Arvind Panagariya on Saturday said that "unemployment," is not a problem for India but "under-employment" is. Speaking at a session 'The Economic Whisper: how to fuel growth with jobs' at the concluding day of the two-day ABP Network's 'Ideas of India Summit 3.0' here, he also sounded optimistic that the jobs problem in the country will be solved over the next 10 years. "Unemployment is really not India's problem in my view. Our problem is underemployment, so productivity is low. So the job that can be done by one person often gets done by two people or maybe three people. And that is where I think, the real challenge of jobs is creating well-paid high-productivity jobs," he said. Stating that in the economy's jargon, India is a labour-abundant and capital-scarce country, he said, "What we have done is to put much of the capital in very selective sectors which are in any case very

Politicians to economists, the changing composition of Finance Commissions

The govt is in the process of appointing a member in place of Niranjan Rajadhhyaksha, the executive director at Artha Global, who resigned from the Commission earlier this month

Govt must focus on exports to reach 10% economic growth: Finance Commission

India must focus on exports to achieve 10 per cent economic growth, Arvind Panagariya, Chairman of the 16th Finance Commission, has said. Paragariya also said that the temptation of import-substituting industrial policy is not unique to India. "I have looked at successful countries such as...Singapore, Taiwan, South Korea, China, and India - these are the...high-growth examples. "My conclusion is very clear - countries that have been open are the ones that have grown rapidly," he said in an interaction with 'Foundation For Economic Development'. He added that the intellectual support for industrial policy and import substitution remains strong in India. Panagariya also explained how the global export market was worth USD 32 trillion in 2022, almost ten times India's GDP. He pointed out that China acquired a very large share of certain products which gave the country a huge boost. "For 3-4 decades, it grew at 10 per cent a year," the economist said.