By Admin 
- This time there will be no revenue deficit grant, but development will increase.
Financial Planning: To strengthen the economic condition of any state, good tax collection is necessary, but sometimes even after earning good income from tax, the economic condition of the states does not become that strong and the reason for this is excessive spending. Merely increasing the income does not strengthen the economic situation, unless the continuous expenses are kept under control. In view of this, the 16th Finance Commission has given an important suggestion to strengthen the economic condition of the states.
In fact, the Commission believes that in some states the income is not increasing as fast as the expenditure is increasing. Therefore, the states will have to try to increase their earnings and along with increasing the earnings, they will also have to reduce their non-essential expenses, so that the economic condition of the state remains better.
Haryana is number 1 in the country in tax collection, Bihar is the worst, report reveals the self-reliance of the states.
Do not take loan beyond your budget
Apart from this, the Commission says that the state should not take more loan than the budget, doing so should be avoided. Even if for some reason a loan has to be taken, all the information related to it will be kept before the people in the budget every year.
Will revenue deficit grant be given or not?
According to the report, this time it has not been recommended to give Revenue Deficit Grant to any state. Not only this, but no separate proposal has been made to provide any special financial assistance to any state or region. Along with this, the Commission has advised that states should spend only according to their earnings. This is why the Commission said that the fiscal deficit of any state should be kept within 3 percent of its total economic capacity and should not be more than this.
People of Sikkim are the richest, Bihar is still the poorest, which states won in per capita income?
Commission gave advice to the states
- The Commission says that now states should increase their tax earnings.
- Also spend only as per need. If there is no need then control unnecessary expenses.
- This will make the state economically stronger.
What effect will this have on people?
This will also affect people like…
- If the state becomes economically strong then better facilities will reach the people.
- With the strengthening of the economic situation, more money can be spent on facilities like roads, schools and hospitals than before.
- The state will not have to take any kind of loan.
- A good amount of money will be available for important development schemes.
- In future, this money can help in government works.