He has objected to the fact that there is no linkage between efficiency and share in Central taxes. On the contrary the states which are backward and do not possess Center for their fiscal deficits and other financial problems. They have asked the Center for early disbursal of the Rs. 11,000 crore, earmarked in the 2000-2001 budget. The amount is earmarked to help these states to tide over immediate financial problems. These states which lagged behind opposed the move saying that they would not at all like to face a situation where the Union Government will impose IMF style conditions on them for providing assistance and imposing the monitoring mechanism.
Political considerations are much heavier than the financial discipline.
There is very little hope that Maharashtra may get the share it used to get as per the recommendations of the 10th Finance Commission. All rights reserved. See disclaimer and privacy policy.