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  • Category: Miscellaneous

    How to tackle center funding to states and discrimination thereof?

    Where ever there is opposition government ruling the states, the general complaint is about non releasing of eligible amounts to them and the partisan attitude allegations against the center. There must be sure mechanism and the due amounts should automatically go to the states and there cannot be stoppage or holding the funds. Should there be ombudsman be appointed to look into this funding matter and in future no state should heap complaints against the center and vice versa. What is your suggestion on improving the formidable center and state relations.?
  • #714518
    There is no need of any ombudsman between center and state. According to the Constitution, the President of India is authorized to set up a Finance Commission every five years to make recommendation regarding distribution of financial resources between the Union and the States.
    The Finance Commission recommends to the President as to:-
    1. The distribution between the Union and the States of the net proceeds of taxes to be divided between them and the allocation between the States of respective shares of such proceeds;

    2. The principles which should govern the grants-in-aid of the revenue of the States out of the Consolidated Fund of India;

    3. The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State;

    4. Any other matter referred to the Commission by the President in the interest of sound finance

  • #714521
    @713518 my target thread was for the central funds during the natural disaster and calamities.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #714525
    The author's point is somewhat correct that the center and state government is often in dispute over financial relations because the opposition government has to say that the Center is not giving them proper financial support. There are some articles mentioned in our constitution, as such, under Article 275 in the Constitution, Parliament is authorized to provide grant-in-aid to any state. Parliament can determine the need for aid to be determined, the need for grant-in-aid can be determined and different amounts can be set for different states. The Union or a State may make any kind of grant for any public purpose, notwithstanding that the context with which the Parliament and the State legislature has framed the rules is not its purpose. States should be provided with some flexible financial sources to increase their income.
    In a federal system where central and state governments exist. It is natural for some differences to persist there. Therefore, efforts should be made in this direction that the center should remain as powerful as possible and also maintain satisfaction and development in the states.

    Swati Sharma

    Keep your Face to the SunShine

  • #714550
    After reading the thread I also felt that it is about the general funds sanction to various states by the central government but never thought it is about funds distribution during the natural disaster and calamities. The author might have mentioned this aspect in a clear in his thread itself.
    Anyhow this dispute between the states and the central government will bealways there. As long as Babu was the Chief Minister of the AP state, he used to always talk about funds from the central government. Even KCR is doing that only. But the present CM of AP is not doing any sound as many cases are pending against him and anytime probelm may come to him.
    Even in times of disater also,. centre government will depute a team to study the situation and basing their recommendations the government will act. But it will never take any unilateral decision. However there will be always complaints about these funds when the state government is of different party from that of the party to which the central government belongs.

    always confident

  • #714570
    While every state government is dependent on Central funds allotted for the state, the government at the centre, whoever it may be, thinks of gaining power in a state where they are in opposition. The problem starts because of this only and if there is a mechanism to automatically debit the specified amount from the funds managed by the Centre it may be resolved. The interesting thing is, the requirement of each state varies depending on many situations and at certain times like drought, flood or natural calamities the demand increases. The funds managed by the centre is used for various purposes throughout the country and there is always mudslinging between the opposition-ruled state and the Central government about the utilization of funds. The states go on alleging that they do not get their shares and the Centre also alleges that the fund they grant to the opposition-ruled states for a specific purpose remains under-utilized. I think both the Central government and the opposition-ruled state governments are so used to it that they will not lose an opportunity to get some mileage of the funding issue.

    "Life is easier when you enjoy what you do"

  • #714617
    As per my understanding the funds are released by central Govt in accordance with the actual requirement of the states, its population, and other such considerations. The yardsticks are already in place and here is no preference for a state over other state. Still some states complain that they are not getting it. Such complaints are only done to attract the public to take sympathy that because central Govt is not giving funds so we are not able to do any development work. This is in a bad taste and can be said as mean politics to hide one's efficiency by making excuses like that.
    Thoughts exchanged is knowledge gained.

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