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Progressiveness of Finance Commission

The implications of the recommendations of the Fourteenth Finance Commission on finances of Bihar as a result of changes in the tied, untied and overall union devolution are identified. The data reveals that there is an increase in tax devolution, but its share in grants, plan and non-plan, has come down drastically, hardly reflecting any increase in the total resources transferred. In reality, there has been a decrease of 1.3 percentage points in the share of tax devolution for Bihar between Thirteenth and Fourteenth Finance Commissions. Along with the revenue loss due to liquor ban, this loss has huge financial implications for Bihar’s exchequer.

Fiscal Federalism and Regional Inequality in India

In all federal structures, the composing units are not self-sufficient financially. But, in India, the economic dependence of states on the centre is rather high because of widespread disparities in their levels of economic development. The federal transfers to the states through the Finance Commission, Planning Commission and centrally-sponsored schemes are investigated. The role of the union government in equitable direct investment, subsidy, and private investment policy for unbiased regional development is also underlined . The data proves that although the Finance Commission’s transfers are progressive, the share of devolution for low-income states is gradually decreasing. Unfortunately, all other transfers and efforts by the centre are regressive to address the regional inequality issues.

Dissecting the Draft Labour Code on Social Security, 2018

While the draft Labour Code on Social Security, 2018 tries to cover over 90% unorganised workers, it still has some issues that need to be addressed.
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