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Balancing Act: Examining Central-State Fiscal Relations in India with Shri CA. Venugopal Swami B
Hyderabad (Telangana) [India], June 19: India’s federal structure hinges on a delicate balance between the central and state governments. A crucial aspect of this balance is fiscal federalism – the division of financial resources and responsibilities. Shri CA. Venugopal Swami B, a seasoned chartered accountant and political figure, sheds light on this complex relationship. “Article [...]
Hyderabad (Telangana) [India], June 19: India’s federal structure hinges on a delicate balance between the central and state governments. A crucial aspect of this balance is fiscal federalism – the division of financial resources and responsibilities. Shri CA. Venugopal Swami B, a seasoned chartered accountant and political figure, sheds light on this complex relationship.
“Article 16 focuses on equality of opportunity in public employment,” says Shri CA. Venugopal Swami B, “but the allocation of funds falls under different constitutional provisions, like Parts XII and XIV.” These parts outline the distribution of revenues, grants, and principles that govern such allocations.
Shri CA. Venugopal Swami B believes that the recent recommendations by the 15th Finance Commission offer promising advancements. Increased tax devolution to states, rising from 32% to 41%, enhances fiscal autonomy and spending power. “This strengthens their ability to invest in areas like healthcare, education, and infrastructure,” he shares.
