To meet its terms of reference, the 15th Finance Commission has recommended a separate mechanism for funding defence and external security but it has facilitated this by a reduction in grants to the states, which works out to Rs 1.5 trillion over five years. “As a consequence, the Commission has penalised the primary engines of development spending in India: The state governments,” the top edit points out. A more lasting solution would have been for the government to focus on improving tax collection as a percentage of gross domestic product to fulfill its obligations, the edit argues. Read it here.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
SUBSCRIBE TO INSIGHTS
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- 26 years of website archives.
- Preferential invites to Business Standard events.