What steps should be taken to prevent the squeezing of funds by the Centre for the States?
Discussion on the allocation of funds between the Centre and States.
To prevent the squeezing of funds by the Centre for the States, several measures can be taken:
- Strengthen Fiscal Federalism: Ensure a fair and transparent devolution of funds as recommended by the Finance Commission.
- Increase States’ Share: Enhance the percentage of tax revenue allocated to States to empower them financially.
- Reduce Centrally Sponsored Schemes: Limit the number of schemes with conditional funding, giving States more autonomy over fund usage.
- Timely Fund Release: Ensure prompt release of funds to States to avoid delays in implementation of welfare schemes.
- Encourage State Revenue Generation: Support States in widening their tax base and financial resources.
- Promote Cooperative Federalism: Foster dialogue between Centre and States for consensus-based decisions on fund allocation.
Answered
6 days ago