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Is state walking on tightrope due to drop in share of taxes from centre ?

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Amidst drop in share of states  from the centre in taxes due to drop in GST collection and decrease in share of central taxes, states are feeling the heat.

Rajasthan too faces daunting task and Chief Minister Ashok Gehlot has several times expressed his concerns over this.

The state may therefore faces challenge of mobilization of additional resources to run its social welfare. Rajasthan government has been at forefront of providing relief to the people in the state through its various schemes. There are schemes like giving wheat to BPL at Rs1 per kg and of giving social security pensions for elderly people, single women, widows etc. All these schemes obviously require funds and were strengthened after Gehlot government came back to power for the third time in the state.

The point to be focused is that Rajasthan and other states are dependent on shares of taxes and funds in centrally sponsored schemes for effectively running the state.

In this backdrop the state level tax advisory committee meeting was held in Jaipur before the upcoming state budget. Chief Minister Ashok Gehlot who also heads the finance department chaired the meeting and took suggestions from the stakeholders.

The nation is already passing through a phase of economic slowdown and the state budget which is being prepared at this time is a difficult task. Gehlot said that the suggestions of the industrialists were important for giving promotion to industries and state government was working on all the aspects to make a better environment for industries

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