STOCK MARKET BSE NSE

'States to Play Major Role in Fiscal Freedom'

Published: 17th March 2015 06:00 AM  |   Last Updated: 17th March 2015 03:50 AM   |  A+A-

CHENNAI: If the recommendations of the 14th Finance Commission are to let intended benefits accrue to the States, then the Plan has to be delinked from the classification in budget documents and accounts, said Y V Reddy, former chairman, 14th Finance Commission and Former Governor, Reserve Bank of India.

Reddy, who was speaking at the Raja J Chelliah Memorial Lecture on Monday, said that the follow up move would be in line with how the Commission had submitted its recommendation in its report.

“It was formulated without reference to the distinction between Plan and non-Plan. A delinking will facilitate assessment, scrutiny and approval of all expenditures in a sector or activity, or department in a comprehensive manner and not only incrementally.”

He also spoke extensively on the bigger role that the state governments will have to play now that they have been granted larger fiscal freedoms.

“The States can take full advantage of the experience gained from various strategies and programmes in other States, now that they have a greater autonomy in deciding some of their strategies and schemes,” said Reddy.

 “The plan mindset should be replaced with a development mind set, of which Government budgets are only an element,” he added.

More from Business.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp