And the states still complain about lack of funds. With the UP election results, UPA is likely going to find itself bogged down even more. Looks like this year we’ll have an interesting talk on the Budget. And the Aam Aadmi everyone mumbles about is probably going to find things worse off in this sphere. I’ll look forward to comparing last year’s coverage with this year’s!
I’ve yet to develop a way to manage my response to my temper flares when I read about the endemic corruption and mismanagement in India. I wonder if I should hop into the political sphere and challenge myself to make a difference. It certainly won’t be the money that motivates me – at least the legal gains!
Even now, there seems to be concern with the Centre. There are genuine fears of the states about loss of tax revenue. But on the other hand, there is also a fear because you are giving up a lot of your taxation rights. What do you think the Centre should do as a confidence-building measure to create a better environment?
States are concerned about their fiscal autonomy. Two-thirds of the taxation powers are with the central government and only one-third with the state government. So states are scared that the central government will encroach on their fiscal autonomy. So states are asking that if GST is being implemented, the central government should compensate whatever revenue loss is there.