Please use this identifier to cite or link to this item: http://14.139.60.153/handle/123456789/11674
Title: State of Social Sector Expenditure in 2015-16
Authors: Centre for Policy Research
Keywords: Centre for Policy Research, New Delhi
CPR, New Delhi
Accountability Initiative
State of Social Sector Expenditure 2015-16
Issue Date: 2016
Publisher: CPR, New Delhi
Abstract: The 14th Finance Commission’s (FFC) recommendations, accepted by the Union Government in February 2015, set the stage for a radical overhaul of India’s fiscal architecture. The recommendations were designed to enhance fiscal autonomy of states by increasing the vertical tax devolution of the divisible pool of taxes from 32 per cent to 42 per cent. Consequently, the Ministry of Finance (MOF) allocated `5.24 lakh crore as tax devolution. This was significantly higher than the 2014-15 allocation of `3.38 lakh crore as per Revised Estimates (RE). This increase in devolution was accompanied by several changes in the mode of state transfers, including cuts in Centrally Sponsored Schemes (CSS), the Union Government’s primary vehicle for financing social sector investments in the country. What are the implications of these changes? Did increased tax devolution result in enhancing the fiscal space available to states? Or was this offset by cuts in CSS and other grants? How have states responded to these changes? Have we seen any changes in the investment patterns of the states? Crucially, has the changed fiscal structure resulted in any visible shifts in social sector investments at the state level?
Description: 28p. Coloured.
URI: http://hdl.handle.net/123456789/11674
Appears in Collections:Central Government Expenditure

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