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

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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.

A Big Pay-off for BJP’s Aggressive Campaign in Jharkhand

The success of the Bharatiya Janata Party in Jharkhand in the 2019 Lok Sabha elections was enabled by the popularity of Narendra Modi as the prime ministerial candidate, people’s perception of the BJP being the saviour of the nation, and a sense of satisfaction with the performance of its government at the centre. However, most of these factors will not be able to mobilise the voters in favour of the party in the forthcoming assembly elections.
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