A report prepared by Kotak shows that while the states’ expenditure on irrigation has jumped from around Rs 20,000 crore in 2000 to over Rs 98,000 crore in 2014.
The FFC also suggested replacing the existing FRBM Act with a debt ceiling and fiscal responsibility legislation, specifically invoking Article 292 in its Preamble.
The BJD has already made it clear that it would not support the amended Land Acquisition Bill in Parliament.
The changing electorate and competitive federalism will be checks on their profligacy.
Higher tax devolution and greater flexibility for states is welcome. Now rationalise Central schemes.
Naidu said that the Finance Commission has not considered challenges of an essentially agrarian State.
Finance Commission award gives meaning to ‘cooperative federalism’.
M Govinda Rao, NIPFP and member, 14th Finance Commission believes that the government needs to cut down wasteful expenditure.
With Punjab now asking for Rs 10,000 crore from the commission as grants, it does not want to lose the balance of Rs 1,000 crore at any cost.
To meet the huge gap, the government has projected making fresh borrowings of about Rs 15,000 crore in the current fiscal.
The 690 MW Salal and 390 MW Dul Hasti have been constructed over river Chenab by NHPC in Reasi and Kishtwar districts respectively.
The mandate of the panel has also been expanded to chart out a financial roadmap for the two states.
Apart from seeking Rs 5,441 crore for major road concretisation projects, the civic body has also sought Rs 9,000 crore for laying ducts across the city to have trench-free roads in order to avoid potholes.
The state finance department has already unveiled austerity measures by asking departments to avoid unwanted travel and office expenses.
The CM also requested for specific grant of Rs 1,55,000 crore to boost various development programmes.