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Financial capacity of States - Coggle Diagram
Financial capacity of States
Intro
CI
Ability of States
expand revenue
constrained since GST
regime was adopted
CG
resource mobilisation
now far greater
opted to undermine
current and future
fiscal capacities of States
SG
drive majority of the country´s
development programmes
MB
BP/GE/IS
SG
Varied economic growth and
income levels across States
confirm the primacy of SG
in all economic sphere
need resources to deliver
responsibilities and aspirations
IS
CG
cut the share of states in taxes
reduced the pool of funds
shared with States
by shifting from taxes
to cesses and surcharges
imposes or increase
cesses and surcharges
instead of taxes
wherever possible
even replaces
taxes with cesses
and surcharges
D/F CAP/TAW
Finance Commission (FC)
Btw 2014-15 and 2019-20
States got ₹7,97,549 crore
less than what projected
by FC
Undeniable
substantial reduction
fiscal resource capacity of States
cesses and surcharges
soared from 9.3% to 15%
gross tax revenues of CG
CON
GI/FU
States
at forefront of development
generation of opportunities and growth
strong states lead
stronger India
DOP
fall in funds
for development and welfare programmes
will adversely impact
livelihoods of crores of Indians
economic growth
cannot be fully realised
adverse consequences
felt in per capita income
human resource development and poverty
Systematic weakening of States serves
neither federalism nor national interest