Is there any discrimination in tax sharing with States, according to FM Nirmala Sitharaman

FM Nirmala Sitharaman denies allegations of discrimination in tax sharing.
  • FM Nirmala Sitharaman denies allegations of discrimination in tax sharing.
  • She emphasizes that the central government is committed to the principles of cooperative federalism.
  • According to Sitharaman, the distribution of taxes among states is done based on the recommendations of the Finance Commission.
  • The Finance Commission is an independent constitutional body responsible for suggesting the division of taxes between the central and state governments.
  • The commission's recommendations are based on various factors such as population, economic indicators, and fiscal capacity of states.
  • Sitharaman asserts that the distribution of taxes is carried out in a fair and transparent manner, without any discrimination towards certain states.
  • She mentions that the central government provides additional funds to states through various schemes and grants to support their development.
  • Overall, FM Nirmala Sitharaman denies any claims of discrimination and reaffirms the central government's commitment to maintaining a cooperative relationship with states in tax sharing.
Answered a year ago
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