Reading about the 14th Financial commission. Horizontal devolution. its just a fancy name to say that the states will be given a larger share of tax revenue from the consolidated tax income generated by the central Govt. But why, mainly because they need the states to withdraw their claim to many taxes they currently collect and pass the Goods and Services Tax bill. Well, the states will lose their income directly which the center will reimburse them afterwords. But there is catch, the states who are high earning loses their ability to generate tax revenue while the funds are channeled to the poorer states. The big, populous, poor states will get a greater share of the revenue which they can spend on development. But the question is will they, the states who actually do well by earning better won't get any money to sustain its economic and social development projects. If in the name of equity, the states which are growing are not nourished, this will pull back the whole fucking economy. These better states could only reach this current position by implementing welfare measures like population control, school and healthcare, roads etc. The poorer states first needs direct action by the Center first to develop an infrastructure after which the fund given by center will be actual used other than just vanishing in the pockets of few.
No comments:
Post a Comment