{"id":40122,"date":"2024-06-19T10:56:02","date_gmt":"2024-06-19T05:26:02","guid":{"rendered":"https:\/\/newswiredelhi.com\/index.php\/2024\/06\/19\/balancing-act-examining-central-state-fiscal-relations-in-india-with-shri-ca-venugopal-swami-b\/"},"modified":"2024-06-19T10:56:02","modified_gmt":"2024-06-19T05:26:02","slug":"balancing-act-examining-central-state-fiscal-relations-in-india-with-shri-ca-venugopal-swami-b","status":"publish","type":"post","link":"https:\/\/newswiredelhi.com\/index.php\/2024\/06\/19\/balancing-act-examining-central-state-fiscal-relations-in-india-with-shri-ca-venugopal-swami-b\/","title":{"rendered":"Balancing Act: Examining Central-State Fiscal Relations in India with Shri CA. Venugopal Swami B"},"content":{"rendered":"
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Hyderabad (Telangana) [India], June 19: \u00a0<\/strong>India\u2019s federal structure hinges on a delicate balance between the central and state governments. A crucial aspect of this balance is fiscal federalism \u2013 the division of financial resources and responsibilities. Shri CA. Venugopal Swami B, a seasoned chartered accountant and political figure, sheds light on this complex relationship.<\/p>\n

\u201cArticle 16 focuses on equality of opportunity in public employment,\u201d says\u00a0Shri CA. Venugopal Swami B<\/a>, \u201cbut the allocation of funds falls under different constitutional provisions, like Parts XII and XIV.\u201d These parts outline the distribution of revenues, grants, and principles that govern such allocations.<\/p>\n

Shri CA. Venugopal Swami B believes that the recent recommendations by the 15th Finance Commission offer promising advancements. Increased tax devolution to states, rising from 32% to 41%, enhances fiscal autonomy and spending power. \u201cThis strengthens their ability to invest in areas like healthcare, education, and infrastructure,\u201d he shares.\u00a0<\/p>\n

Additionally, the commission emphasises sector-specific grants and boosts local government finances by mandating a 31% share of the divisible pool for them. Shri CA. Venugopal Swami B adds, \u201cPerformance-based grants of Rs. 4.36 lakh crore incentivise states to improve health, education, and rural infrastructure.\u201d<\/p>\n

However, challenges remain as Shri CA. Venugopal Swami B highlights that the central government still retains a larger share of revenue-raising powers and controls crucial taxes like GST and corporate tax. He says, \u201cThis limits states\u2019 financial capacity.\u201d<\/p>\n

He also points to the issue of mandated fiscal deficit targets for states, saying, \u201cThese rigid targets restrict their ability to invest in infrastructure, especially during economic revival phases.\u201d<\/p>\n

Another concern is the limited scope of performance-based grants. \u201cExcluding sectors like environmental management and social security hinders crucial development areas,\u201d explains Shri CA. Venugopal Swami B.<\/p>\n

Shri CA. Venugopal Swami B believes that fostering effective fiscal federalism requires a careful re-evaluation of existing arrangements. \u201cPrioritizing central expenditures and discussing a new grant framework are crucial steps,\u201d he says.<\/p>\n

The recent announcement of the 16th Finance Commission\u2019s Terms of Reference signals a commitment to refining the system. By prioritising government finances and fostering collaboration between central and state governments, India can work towards a more balanced and effective fiscal federalism.<\/p>\n

If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hyderabad (Telangana) [India], June 19: \u00a0India\u2019s federal structure hinges on a delicate balance between the central and state governments. A crucial aspect of this balance is fiscal federalism \u2013 the […]<\/p>\n","protected":false},"author":1,"featured_media":40123,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_rishi_post_view_count":226},"categories":[5],"tags":[677],"class_list":["post-40122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-national","rishi-post"],"rishi__cb_customizer_meta":"","comments_count":"0","_links":{"self":[{"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/posts\/40122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/comments?post=40122"}],"version-history":[{"count":0,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/posts\/40122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/media\/40123"}],"wp:attachment":[{"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/media?parent=40122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/categories?post=40122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newswiredelhi.com\/index.php\/wp-json\/wp\/v2\/tags?post=40122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}