The departments which will now have to restrict the overall expenditure within 15% of BE Q2FY21 include commerce, industry, telecom, defence (civil), housing & urban affairs, school & higher education, water resources, drinki
Expenditure on centrally sponsored schemes (CSS), which are shared in 6:4 ratio between the Centre and states, may suffer in FY21 as cash-starved states may not be able to contribute their share to be able to fully implement
At least three Opposition-ruled state governments - Tamil Nadu, West Bengal and Kerala - have come up against the Centre’s decision to link 75% of the extra borrowing space accorded to them, to how they work on and achieve
The Centre on Sunday acceded to a strident demand from states that their market borrowing limit be enhanced to meet the expenditure contingencies of the Covid-19 pandemic amid a glaring revenue deficit.
Centre will soon come out with a new policy to privatise all central public enterprises (CPSEs) in non-strategic space and some in strategic sector in order to open all the industries to private players.
Even though data for February is not yet available, in the first 10 months of FY20, Maharshtra reported just 3.8% growth in tax revenues while Tamil Nadu's tax receipts in the period grew by an even lower 1.5%.
Going by the trend in recent years, the Centre was estimating to collect about Rs 2.45 lakh crore in net tax receipts in Q1FY21, but the actual collections will be very low under the current environment, officials admit.