Bridging North-South divide over tax shares

Bridging North-South divide over tax shares

10 months, 1 week ago

Bridging North-South divide over tax shares

Hindustan Times

Last week, the chief ministers of three southern states alleged discrimination by the Centre in the allocation of funds to states. The 11th Finance Commission report submitted in 2000 reduced the percentage share for high- and middle-income states in the total tax. Whether the constitutionally mandated Finance Commission, appointed every five years to recommend the allocation of taxes between the Centre and states and among states, are agents of profligacy or discipline is a subject of debate. However, the share of Union taxes for southern states has declined from 21.1% in the 11th Finance Commission to 16% in the 15th Finance Commission. The 16th Finance Commission should consider the continuous fall in the share of southern states and make suggestions for compensating them.

Finance India Development Tax Taxes States Southern States Human Development State Share North Commission Centre Southern Nda Finance Commission Private Investment State Capacity Developed States Union Taxes state southern share finance india shares tax taxes northsouth human bridging commission divide development states

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Share of central taxes to states should be hiked to 50%: Stalin

1 month ago

Share of central taxes to states should be hiked to 50%: Stalin

Hindustan Times

The Union government’s share of central taxes to states should be increased to 50% to ensure greater fiscal autonomy, chief minister MK Stalin said during a meeting with the 16th finance commission members in Chennai on Monday. “I hope that the Commission will make recommendations that will address the needs and aspirations of all states in India and enable the …

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Budget 2024 and the impact of the general elections

5 months ago

Budget 2024 and the impact of the general elections

Live Mint

Popular expectations had settled on the notion that the outcome of Election2024 would influence the tenor and direction of Budget2025. The ambition on agriculture reforms, the ₹1.1-trillion infrastructure push, development of industrial parks with states to spur manufacturing, urban development plans and ramp-up of skilling, among others, are all projects that envisage intense cooperation between the Centre and states. FM …

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Centre must share taxes fairly with states: CM Siddaramaiah

5 months, 3 weeks ago

Centre must share taxes fairly with states: CM Siddaramaiah

New Indian Express

BENGALURU: Chief Minister Siddaramaiah on Monday said the Centre should share taxes appropriately and proportionately with the states. Inaugurating the GST Day programme organised by the Commercial Taxes Department here, he said, “GST is an indirect tax and before it was introduced, the state government collected Value-Added Tax. There is an outcry now as states are not getting their fair …

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Tax cuts, teacher raises and a few social issues in South Carolina budget compromise

6 months ago

Tax cuts, teacher raises and a few social issues in South Carolina budget compromise

Associated Press

COLUMBIA, S.C. — A budget compromise reached by a small group of lawmakers Friday means South Carolina will accelerate a planned income tax cut, raise the salaries of all teachers and state employees and send more money to adult and juvenile prisons. A conference committee agreed to the more than $13 billion spending plan for next budget year, sending it …

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Tennessee lawmakers adjourn after finalizing $1.9B tax cut and refund for businesses

7 months, 4 weeks ago

Tennessee lawmakers adjourn after finalizing $1.9B tax cut and refund for businesses

Associated Press

NASHVILLE, Tenn. — Tennessee’s GOP-controlled General Assembly on Thursday adjourned for the year, concluding months of tense political infighting that doomed Republican Gov. “Unfortunately some really really bad bills ended up passing.” While Lee was unable to find consensus on his voucher pitch — an initiative that he vowed to renew next year — he was able to secure a …

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Central transfers — arresting the decline in shares of some States

9 months, 1 week ago

Central transfers — arresting the decline in shares of some States

The Hindu

There are many issues that the Sixteenth Finance Commission will have to deal with. In Table 1, the shares of groups of States and those for selected States are shown, for the Twelfth Finance Commission to the Fifteenth Finance Commission. Between these two Finance Commissions, the loss to the southern States due to the distance criterion amounted to 8.055% points, …

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State-level rumbles in the Indian federation: Can the 16th FC help?

9 months, 3 weeks ago

State-level rumbles in the Indian federation: Can the 16th FC help?

Live Mint

These are tumultuous times, with the resurgence of farmer unrest. It is better to adjust the target in that manner, so that the reported gross tax revenue can be directly used thereafter to compare the percentage states actually got with the adjusted target. In FY23, states received in aggregate ₹9.5 trillion as their tax share, which was 31.1% of the …

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The North-South Divide: Myth or Reality? - News18

10 months ago

The North-South Divide: Myth or Reality? - News18

News 18

Much has been made of the so-called North-South divide, especially by the opposition parties, and much more so as we approach the general elections. But to bring matters up to speed, electorally, the North comprises the states of Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Delhi, Punjab, Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Chhattisgarh, Rajasthan, and Haryana. South India is constituted …

India Karnataka Tamil Nadu Kerala Telangana Hindi South

Inside the Centre vs states battle over funds

10 months, 2 weeks ago

Inside the Centre vs states battle over funds

Hindustan Times

Karnataka protested against the Centre on Wednesday, claiming it was not getting its fair share of taxes, which crimps its ability to do good for the state, and Kerala and Tamil Nadu have similar protests lined up in Delhi in the coming days, as the fractures in India’s fiscal federalist framework become more marked. Of the shortfall of ₹1.65 lakh …

Finance Karnataka Tamil Nadu Kerala Delhi Constitution Uttar Pradesh

Work together to address southern states’ tax concerns

10 months, 2 weeks ago

Work together to address southern states’ tax concerns

New Indian Express

When Karnataka Chief Minister Siddaramaiah leads the ‘Chalo Delhi’ protest at Jantar Mantar in New Delhi today to highlight the “injustice” meted out to the southern states over their share of taxes, he hopes to transform it into a ‘South Tax Movement’. On this, Siddaramaiah has the support of the chief ministers of Kerala, Telangana and Tamil Nadu, who have …

States Siddaramaiah

Karnataka Cong leaders mull formation of ‘Economic Alliance’ of southern states for equal resource distribution: Report

10 months, 2 weeks ago

Karnataka Cong leaders mull formation of ‘Economic Alliance’ of southern states for equal resource distribution: Report

Hindustan Times

Karnataka Congress leaders are mulling the formation of a forum for southern states that serves as an "economic alliance" to guarantee equal distribution of resources from the Centre. This comes in the backdrop of Congress MP DK Suresh's controversial statement that southern states would be forced to demand for a “separate nation” if the “injustice” in distribution of funds continues. …

Karnataka States Congress Southern States Economic Alliance

Congress govts in Centre deliberately kept North India poor with their Freight Equalisation Policy: Union Minister Rajeev Chandrasekhar

10 months, 3 weeks ago

Congress govts in Centre deliberately kept North India poor with their Freight Equalisation Policy: Union Minister Rajeev Chandrasekhar

Op India

Union Minister Rajeev Chandrasekhar on Friday blamed the freight equalisation policies of the successive Congress governments at the Centre for North India lagging behind in development. “It is also necessary for the people of India today, especially in North India, to know why it is that North India has lagged behind South India in development,” Chandrasekhar said while talking ANI. …

India South India Bihar States Congress Indian Jharkhand

Address the disquiet among the states

1 year ago

Address the disquiet among the states

Hindustan Times

The appointment of the 16th Finance Commission is expected shortly. The Finance Commission determines the vertical shares – how much of the Centre’s tax revenue should be given away to states – and horizontal shares – how to distribute that among states. The horizontal distribution formula of the Finance Commission is an important instrument for tackling inequalities across states. In …

Finance Bihar Tax States Tax Devolution Share Commission

The Hindu continues to peddle the North-South divide based on lies peddled by Communist Party leader and JNU prof: 15th Finance Commission report and the truth

1 year, 2 months ago

The Hindu continues to peddle the North-South divide based on lies peddled by Communist Party leader and JNU prof: 15th Finance Commission report and the truth

Op India

Just about 15 days back, The Hindu published an article on an imaginary North-South divide and we had given a detailed rebuttal to it. KCR’s son, KTR, for example, claims that while Telangana paid 3.68 lakh crores to the central government, it only got back 1.68 lakh crores in return. In this particular example, the INR 3.68 lakh crores is …

Finance India Population Telangana Hindu Crores Lakh

Are southern States being punished for their success? | The Hindu Parley podcast

1 year, 2 months ago

Are southern States being punished for their success? | The Hindu Parley podcast

The Hindu

A week ago, Tamil Nadu Finance Minister Thangam Thennarasu accused the Union government of showing a “step-motherly attitude” towards the State over devolution of funds. Around at the same time, at a media conclave, Thiruvananthapuram Lok Sabha MP Shashi Tharoor spoke about the potential danger of political disenfranchisement in the south when the delimitation freeze ends in 2026. These statements …

Hindu State Parley

Are southern States being punished for their success?

1 year, 2 months ago

Are southern States being punished for their success?

The Hindu

A week ago, Tamil Nadu Finance Minister Thangam Thennarasu accused the Union government of showing a “step-motherly attitude” towards the State over devolution of funds. Edited excerpts: In the recent past, several south Indian leaders have been vocal about the share that the southern States get from Central tax kitty. The weightage given to the population in determining the share …

Finance Success Tamil Nadu Kerala Population Constitution Uttar Pradesh

Retribution for the south, accolade for the north

1 year, 2 months ago

Retribution for the south, accolade for the north

The Hindu

In Indian federal democracy, a State’s relative population size gains political and economic significance. In sharp contrast to the northern States, population control has been achieved in the southern States through social development and economic growth. If equal size of Lok Sabha constituencies by population is enforced today as in the population projections of 2023, the five southern States will …

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Why federalism in India is more an aspiration than a reality

1 year, 3 months ago

Why federalism in India is more an aspiration than a reality

New Indian Express

The Centre now transfers 41% to the states from its divisible tax pool as against 32% earlier. While previous finance commissions used the 1971 population as the benchmark to decide the share of the states, the 15th Finance Commission went by the 2011 Census data. Many states, mostly in the South, objected to this as they felt the changed parameters …

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Data | The risk of small States’ heavy reliance on the Union government

1 year, 5 months ago

Data | The risk of small States’ heavy reliance on the Union government

The Hindu

The fiscal situation of India’s States has garnered significant attention in recent times. For three States — Mizoram, Sikkim and Tripura — the revenue receipts have grown slower than the State GSDP implying limited fiscal space to operate. While the share of Union transfers in the revenue receipts of all States combined hovers between 40% and 50%, the ratio is …

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Forecast: North Carolina expects $3B-plus surplus this year

1 year, 10 months ago

Forecast: North Carolina expects $3B-plus surplus this year

Associated Press

RALEIGH, N.C. — North Carolina state government is on track to see a double-digit percentage increase in revenues by the end of the fiscal year compared to the total that legislators used in fashioning this year’s budget, according to a report released Wednesday. Roy Cooper’s state budget office projects that the state will take in $33.76 billion for the fiscal …

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Alaska Legislature to face familiar challenges this year

1 year, 11 months ago

Alaska Legislature to face familiar challenges this year

Associated Press

JUNEAU, Alaska — The Alaska Legislature convenes for a new session Tuesday with a bipartisan coalition controlling the Senate for the first time in over a decade, a divided House struggling to organize for the third straight term and a newly reelected Republican governor who said he’s interested in working with lawmakers and “problem solving.” There is also a large …

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Gov. Justice pitches 50 percent income tax cut over 3 years

1 year, 11 months ago

Gov. Justice pitches 50 percent income tax cut over 3 years

Associated Press

CHARLESTON, W.Va. — West Virginia Gov. Justice said state legislative leadership told him to either to give up on trying to cut income tax or “make a big splash.” “And so here comes me cannonballing into the pool,” he said, to applause from some members of the crowd gathered in the House of Delegates chamber. tonight I’m proposing our West …

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Undermining federalism, eroding States’ autonomy

2 years, 1 month ago

Undermining federalism, eroding States’ autonomy

The Hindu

When the National Democratic Alliance Government took office in 2014, there were hopes that India would move towards cooperative federalism. The Fifteenth Finance Commission, in its first report, had recommended a special grant to three States amounting to ₹6,764 crore to ensure that the tax devolution in 2020-21 in absolute terms should not be less than the amount of devolution …

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State legislative races are on the front lines of democracy this midterm cycle

2 years, 1 month ago

State legislative races are on the front lines of democracy this midterm cycle

NPR

State legislative races are on the front lines of democracy this midterm cycle Enlarge this image toggle caption Laurence Kesterson/AP Laurence Kesterson/AP State legislative races can feel low stakes when compared to national political contests. Sponsor Message The U.S. Supreme Court could give state legislatures power over federal elections Much of Democrats' urgency stems from a case that the U.S. …

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South will lose MPs for population curbs: KTR

2 years, 3 months ago

South will lose MPs for population curbs: KTR

Deccan Chronicle

HYDERABAD: TRS working president and IT minister K.T.Rama Rao expressed concern that southern states may lose Parliament seats when the Centre delimits Lok Sabha constituencies in the future because they have effectively implemented population control measures. Rao shared a tweet from ‘Stats of India’ indicating that the population share of southern states in the national population has decreased from 26.2 …

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Data | How States’ share in Centre’s taxes declined due to cesses, explained in 5 charts

2 years, 3 months ago

Data | How States’ share in Centre’s taxes declined due to cesses, explained in 5 charts

The Hindu

Nearly two weeks ago, Chief Ministers expressed their concern about dwindling State revenues in a NITI Aayog meeting chaired by the Prime Minister. According to the 15th Finance Commission’s report, in FY19, the Union government raised 62.7% of the total resources raised by the Union government and States, while States had borne 62.4% of the aggregate expenditure. Chart 1 shows …

Taxes States Union Revenue Share Chart Finance Commission

Income tax cuts, rebates centerpiece of SC’s $13.8B budget

2 years, 6 months ago

Income tax cuts, rebates centerpiece of SC’s $13.8B budget

Associated Press

COLUMBIA, S.C. — Many South Carolina taxpayers may soon be getting several hundred dollars in tax rebates on top of a cut in their regular tax rates after a group of powerful lawmakers from the House and Senate agreed Friday to a compromise on the state budget. Along with the tax cut, the plan raises the minimum salary for teachers …

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A few SC senators regret $1B tax rebate as$12B budget passes

2 years, 7 months ago

A few SC senators regret $1B tax rebate as$12B budget passes

Associated Press

COLUMBIA, S.C. — Some Republicans in the South Carolina Senate had a little remorse over taking $1 billion out of the state budget to give income taxpayers rebates. The senators took control of the chamber’s $12.6 billion budget debate for several hours Wednesday, unsuccessfully pushing to have that money spent instead on road improvements, building rural schools, providing a $1,500 …

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Mississippi lawmakers pass largest-ever state income tax cut

2 years, 8 months ago

Mississippi lawmakers pass largest-ever state income tax cut

Associated Press

— Mississippi, one of the poorest states in the nation with perpetually underfunded schools and struggling rural hospitals, had its largest-ever tax cut passed by lawmakers Sunday. The Republican-controlled state House and Senate voted by wide margins to pass a bill that would reduce the state income tax over four years, beginning in 2023. Opponents say reducing the income tax …

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SC Senate unanimously passes income tax cut and rebate

2 years, 9 months ago

SC Senate unanimously passes income tax cut and rebate

Associated Press

COLUMBIA, S.C. — The South Carolina Senate unanimously passed a $2 billion income tax cut and rebate bill, setting up what will likely be intense negotiations with the House over the $1 billion tax cut it passed last month. The proposal would send a rebate of at least $100 to everyone who files an income tax return in South Carolina, …

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Every SC taxpayer gets at least $100 rebate in Senate bill

2 years, 9 months ago

Every SC taxpayer gets at least $100 rebate in Senate bill

Associated Press

COLUMBIA, S.C. — Everybody who files an income tax return in South Carolina — even the more than 1 million people who pay no state income tax — would get a rebate check of at least $100 in a bill being considered by the state Senate. They make up about half of a $2 billion package that would also cut …

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Democrats and Republicans praise tax cuts in South Carolina

2 years, 10 months ago

Democrats and Republicans praise tax cuts in South Carolina

Associated Press

COLUMBIA, S.C. — The Republican-dominated South Carolina House unanimously passed a $600 million income tax cut Wednesday in less than 15 minutes of debate with much of that time spent by Democrats praising the idea. Between the booming state economy and money saved from previous budget years in case the pandemic caused an economic collapse, South Carolina lawmakers have an …

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S Carolina House leaders want to just tackle income tax cut

2 years, 10 months ago

S Carolina House leaders want to just tackle income tax cut

Associated Press

COLUMBIA, S.C. — Republican leaders in the South Carolina House appear ready to tackle cutting income taxes in the state before this year’s General Assembly session ends in May. A House subcommittee plans to pass a bill cutting the state’s top income tax rate from 7% to 6% in time to be considered along with the budget later this month. …

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State will recommend SC to remove 50% cap on reservation: CM Soren

3 years, 9 months ago

State will recommend SC to remove 50% cap on reservation: CM Soren

Hindustan Times

The Jharkhand government will inform the Supreme Court that the state was a votary to remove the 50% cap on reservation in government jobs to those belonging to Scheduled Tribe, Scheduled Caste and Other Backward Categories, chief minister Hemant Soren said on Friday. HT Image Responding to budgetary discussions in the state Assembly, the CM chief said the apex court …

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South emerges as flashpoint of brewing redistricting battle

3 years, 9 months ago

South emerges as flashpoint of brewing redistricting battle

Associated Press

The partisan showdown over redistricting has hardly begun, but already both sides agree on one thing: It largely comes down to the South. For example, in North Carolina — the Republican legislature alone has redistricting power, without input from the state’s Democratic governor — the legislature drew maps in 2010 that were eventually found to be racially gerrymandered. Jason Torchinsky, …

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South Carolina revenues up, but no one knows if it will last

3 years, 10 months ago

South Carolina revenues up, but no one knows if it will last

Associated Press

COLUMBIA, S.C. — South Carolina economists decided Friday to make no changes to 3-month-old revenue estimates because COVID-19 is still causing so much uncertainty in the economy. We don’t want to be careless in this uncertain time,” Rainwater said at Friday’s meeting of the state Board of Economic Advisors. That means the official prediction for South Carolina remains unchanged from …

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States may not return to pre-covid debt levels by FY26: 15th Finance Commission’s roadmap

3 years, 10 months ago

States may not return to pre-covid debt levels by FY26: 15th Finance Commission’s roadmap

Live Mint

The covid-19 pandemic disrupted the finances of India’s states in the ongoing fiscal year. While most states could return to pre-pandemic output levels next year, their fiscal indicators are likely to remain strained for much longer, projections by the 15th Finance Commission show. Moreover, this was the first time a Finance Commission used 2011 population data instead of 1971 data …

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Govt. agrees to maintain States’ share in the divisible pool of taxes

3 years, 10 months ago

Govt. agrees to maintain States’ share in the divisible pool of taxes

The Hindu

The government has accepted the Fifteenth Finance Commission’s recommendation to maintain the States’ share in the divisible pool of taxes to 41% for the five-year period starting 2021-22, and given an ‘in-principle’ nod to the panel’s suggestion to set up a separate non-lapsable fund for defence and internal security modernisation. The Commission’s report, which was submitted to the President in …

States Share Commission Fund Gsdp Govt Agrees