The action taken report by the finance ministry says it has accepted the recommendation on Centre-state transfers “in principle”
The 14th Finance Commission Report decisively shifts economic powers to the states, making them collectively much larger than the centre in terms of financial and political power. The Lutyens power elite cannot fatten itself on Delhi anymore
The Commission headed by former Reserve Bank of India governor, YV Reddy, has gone a step further beyond the resource sharing recommendations all Finance Commissions do and outlined a new paradigm of Centre-state relations.
The Commission has patted states on the back for largely meeting the fiscal consolidation targets set for them, while rapping the Centre on the knuckles for not being disciplined enough and amending the FRBM Act and Rules at its will.
BJP presdient Amit Shah congratulated the Prime Minister Narendra Modi-led NDA government for accepting the recommendations of the 14th Finance Commission.
The government tabled the GST bill in the Lok Sabha in December and is hopeful to pass the landmark legislation in the budget session.
In a letter to all Chief Ministers, Modi said the states are free to change Centrally Sponsored Schemes and plan the course of their development.
Sen said he is “constrained” with the fact that detailed discussions among the members of the commission on various topics haven’t fully translated to the recommendations
Suggestions made by the different experts have been noted and would be forwarded to Prime Minister Narendra Modi.
The Tamil Nadu government has asked the Modi government to adopt a cautious approach on the 'complex issue' of providing area-based tax exemptions.
The assessment sent to the prime minister recommended that a new think tank be set up with experts of domain knowledge to replace the plan body.
Many states are improving their economic freedom rankings; but, ironically, the centre is beginning to encroach on their ability to improve further.
Maharashtra Chief Minister Prithviraj Chavan Tuesday asked the 14th Finance Commission to provide Rs 3.46 lakh crore for a period of five years considering the growing urbanisation in the state.
Tripura also requested for waiver of Rs 383 crore of Central loans. <br /><br />