ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Sitaraman GurumurthiSubscribe to Sitaraman Gurumurthi

Externally Funded Projects and State Plans

In view of the liberalised guidelines for externally funded projects, there is a race among state governments to formulate as many projects as possible for external assistance since in the case of these projects as much as 70 per cent of the aid disbursed becomes eligible for additional central assistance and the states' liability is limited to 30 per cent of the project cost.

First Report of Ninth Finance Commission

An Analysis Sitaraman Gurumurthi The first report of the Ninth Finance Commission has several unique features such as the recommendation of grants to states which are in need of assistance without linking them with the states being surplus or not prior to devolution of taxes and the adoption of a normative approach to the tax revenues of states. The approach of the commission in recommending grants to state governments to meet some of their special problems in fact reflects the true spirit of Article 275 of the constitution.
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