Breaking News - As part of a post-demonetisation gift, the government could increase spending for the coming financial year in health, education, women & child development and related social sector schemes by 10-12 per cent, Business Standard has learnt.
This would run concurrently with the increased layout on social sector by state governments, after the Fourteenth Finance Commission (FFC) recommended the latter spend more on schemes in health, education and similar segments. Most of these areas are state subjects.
The FFC had increased the devolution of taxes to states from the divisible pool, from 32 per cent to 42 per cent. However, it had reduced non-tax transfers. In its report, the
Read our full coverage on Union Budget 2016
Y V Reddy-headed commission had said, “We urge state governments to use the additional fiscal space provided by us in the tax devolution to meet such requirements.” After it accepted the FFC recommendations, the Centre had slightly reduced some of its budgeted spending in social sector schemes for 2015-16 and 2016-17. That is set to reverse. Budget makers believe proceeds from the latest voluntary disclosure scheme, income tax raids and whatever dividends the Reserve Bank of India can pass on will enable that extra spending, government sources said. (Read More)
The FFC had increased the devolution of taxes to states from the divisible pool, from 32 per cent to 42 per cent. However, it had reduced non-tax transfers. In its report, the
Read our full coverage on Union Budget 2016
Y V Reddy-headed commission had said, “We urge state governments to use the additional fiscal space provided by us in the tax devolution to meet such requirements.” After it accepted the FFC recommendations, the Centre had slightly reduced some of its budgeted spending in social sector schemes for 2015-16 and 2016-17. That is set to reverse. Budget makers believe proceeds from the latest voluntary disclosure scheme, income tax raids and whatever dividends the Reserve Bank of India can pass on will enable that extra spending, government sources said. (Read More)
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