Vibha Murali, Vellore Institute of Technology, School of Law, Chennai
ABSTRACT
Fiscal Federalism refers to matters of expenditure and revenue, and fiscal links between different levels of the government. Modes of fiscal federalism are multitude, yet there isn’t a particular ‘best model’ that has been named. The reason for this is the fulfilment of the evaluative criteria on different levels, by different federal units. In India, with the advent of GST, there has been a strain on the federalist nature of the country. The reason for this is threefold, firstly the states are being made to spend at a proportion that is more excessive than what they accrue for themselves. Secondly, the aftermath of the centre’s failure to give states the promised compensation for the first 5 years, and finally, the ineptitude of the GST Council.
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