{"id":230964,"date":"2023-03-14T19:27:38","date_gmt":"2023-03-14T13:57:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=230964"},"modified":"2023-08-28T14:33:22","modified_gmt":"2023-08-28T09:03:22","slug":"yojana-march-2023-summary-towards-cooperative-fiscal-federalism","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/yojana-march-2023-summary-towards-cooperative-fiscal-federalism\/","title":{"rendered":"[Yojana March 2023 Summary] Towards cooperative fiscal federalism – Explained, pointwise"},"content":{"rendered":"\n\n\n\n
For\u00a07PM Editorial<\/strong>\u00a0Archives click\u00a0HERE <\/a>\u2192<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Introduction<\/h2>\n

India<\/span> is<\/span> moving<\/span> towards<\/span> cooperative<\/span> fiscal<\/span> federalism<\/span> by<\/span> giving<\/span> more<\/span> money<\/span> and<\/span> power<\/span> to<\/span> state<\/span> governments<\/span> and<\/span> decentralising<\/span> its<\/span> finances.<\/span> Now,<\/span> states<\/span> get<\/span> their<\/span> share<\/span> of<\/span> taxes<\/span> based<\/span> on<\/span> a<\/span> formula<\/span> instead<\/span> of<\/span> a<\/span> grant,<\/span> which<\/span> gives<\/span> them<\/span> more<\/span> spending<\/span> freedom<\/span> and<\/span> flexibility.<\/span>\u00a0<\/span><\/p>\n

In the 2023\u201324 Union Budget provided an Effective Capital Expenditure of INR 13.7 lakh crore (This includes provision made for the creation of capital assets through Grants-in-Aid to States). <\/span>This<\/span> move<\/span> shows<\/span> that<\/span> the<\/span> Union<\/span> government<\/span> is<\/span> serious<\/span> about<\/span> cooperative<\/span> fiscal<\/span> federalism<\/span> and<\/span> giving<\/span> states<\/span> financial<\/span> freedom.<\/span>\u00a0<\/span><\/p>\n

What<\/span> is<\/span> fiscal<\/span> federalism<\/span>?<\/span>\u00a0<\/span><\/h2>\n

Fiscal<\/span> federalism<\/span> refers<\/span> to<\/span> fiscal<\/span> relations<\/span> between<\/span> various<\/span> government<\/span> units,<\/span> which<\/span> in<\/span> the<\/span>\u00a0<\/span>Indian<\/span> context<\/span> means<\/span> the<\/span> Union<\/span> Government<\/span> and<\/span> the<\/span> State<\/span> Governments.<\/span> Both<\/span> tiers<\/span> of<\/span> government<\/span> need<\/span> to<\/span> possess<\/span> adequate<\/span> financial<\/span> resources<\/span> to<\/span> discharge<\/span> their<\/span> respective<\/span> responsibilities<\/span> enshrined<\/span> in<\/span> the<\/span> Constitution<\/span> effectively.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

What<\/span> are<\/span> the<\/span> constitutional<\/span> provisions<\/span> that<\/span> encourage<\/span> cooperative\u00a0fiscal<\/span> federalism?<\/span>\u00a0<\/span><\/h2>\n