The commission has covered most of the Northeastern and Himalayan states as well as smaller states.
The information from news reports on these visits show that all states have raised two issues. One, increasing the combined share of states in the divisible pool of Union tax revenue to 50 percent and including cess and surcharges in the divisible pool. Two, change the horizontal distribution formula to protect each state's interests.
Gujarat and Southern states have argued to give efficiency a greater weight, and other smaller states have argued based on their specific fiscal problems. This is the opportune moment for states to argue for a transformative change in the horizontal distribution formula.
Basics of a horizontal distribution formula: The formula is to address the budget deficits or fiscal gaps in states' budgets. The differences in fiscal gaps is because states differ in terms of population, revenue capacity, area, other specific problems and efficiency factors. Finance commissions recommend a distribution formula assigning different weights to these indicators and the indicators are also defined variously by them.
Because finance commissions change these complex formulas, the states cannot easily predict how their fiscal behaviour will be assessed by future commissions. But the overall analysis suggests that ultimately a state's share in tax revenue increases with its population and declines with its income, as the Finance Commission prefers equity to efficiency.
هذه القصة مأخوذة من طبعة December 17, 2024 من The New Indian Express Nagapattinam.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة December 17, 2024 من The New Indian Express Nagapattinam.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
'Chip designing skills, ecosystem give India edge in semiconductor manufacturing'
India has set an ambitious target of becoming a semiconductor manufacturing hub. What are the main challenges India faces in achieving this target?
'AI is a tool that enhances productivity; it doesn't replace jobs'
Artificial Intelligence (AI) is a tool that enhances productivity rather than replacing jobs, said Shelton Rego, vice-president of sales, Freshworks India.
94% of Indian desk workers feel the urgency to master AI'
94%
Dubai may host India matches in 2025 Champions Trophy
EXPECTEDLY, the International Cricket Council on Thursday announced that India will play their 2025 Champions Trophy matches at a neutral venue.
Ashwin gets hero's welcome at home from family and friends
RAVICHANDRAN Ashwin, who took the cricketing world by surprise with his sudden retirement from international cricket, arrived in Chennai early morning on Thursday.
AFTER ASHWIN, WHO? THE LAST OF OGS IN FINAL STRETCH
Post offie's retirement, focus is on senior players like Rohit, Kohli and India's transition phase
Liverpool & Arsenal reach semifinals
LIVERPOOL moved into the League Cup semifinals as the holders won 2-1 against managerless Southampton, while Gabriel Jesus ended his goal drought with a hat-trick in Arsenal's 3-2 victory over Crystal Palace on Wednesday.
Day of records for Richa & India as hosts win series 2-1
RICHA Ghosh (54) equalled the world record for the fastest fifty in women's T20Is (18 balls) after Smriti Mandhana's (77) fireworks as India registered 217 for 4 in the series-deciding third and final match against the West Indies here on Thursday.
Start-up funding up 6% YoY at $11.3 bn in 2024
IN 2024, the start-up ecosystem saw a marginal 6% increase in funding at $11.3 billion compared to $10.7 billion in 2023.
Accenture posts $17.7 bn revenue, beats Street view
IT service provider Accenture has beat Street estimates and posted $17.7 billion revenues in the first quarter ended November 2024.