Rationalisation of the transfer system and restoration of fiscal balance in the states will not be possible without a radical review of the practice of planning, plan financing and central assistance for state plans. While determining revenue needs of the states normatively, it is necessary to take a holistic view and do away with the plan and non-plan distinction in revenue expenditures, which is a source of other distortions in expenditure priorities. Until that happens, rationalisation of the transfer system will not be possible.
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.
Comments
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.