Journal of Indian School of Political Economy

G. Thimmaiah ¹

Affiliations
1 Planning Commission, New Delhi, IN

Abstract

The last decade of the 20th century has witnessed both break-up of two federations and an attempt to form a new federation. This has got some lesson for India. India is a quasi federation. Both political and financial powers are tilted in favour of the Union government. These were used by the Congress party to promote the centralisation process in political, financial and administrative spheres. This led to discontentment among the states and demand for more autonomy. The most contentious issues in regard to the Union-state relations today are: the increasing number of Centrally-sponsored Schemes, declining proportion of financial transfers on the recommendations of both Planning and Financial Commissions, attempt to centralise states' sources of revenue, refusal to revise royalty on minerals, impact of administered prices on state finances, location of Central government units in different states and the distribution of Central assistance for state Plans based on Gadgil formula. However, the states also have got some responsibility in a federation. They include, reducing the revenue and fiscal deficits, controlling non-plan expenditure, pricing of the goods and services supplied by their public enterprises, reforming the tar systems to harmonise with the national tax reforms and devolving adequate funds to the Panchayat Raj Institutions (PRIs) and Urban Local Bodies (ULBs) to enable them to function as grassischolar_mains level democratic units. All these require a more dispassionate decision making by the national and state level political leaders.

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G. Thimmaiah ¹

Affiliations
1 Economics Unit, Institute for Social and Economic Change, Bangalore, IN

Abstract

Populist programmes have been launched in the country both by the central and state governments. They have been introduced as redistributive strategies or for gaining political popularity, particularly during times of elections, or for meeting the provisions for the Scheduled Castes and Scheduled Tribes in the Constitution. While some of the programmes like providing foodgrains at subsidised prices to the poor have served the redistributive strategies, others like the waiver of agricultural loans have been a total disaster.

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G. Thimmaiah ¹

Affiliations
1 Economics Unit, Institute for Social and Economic Change, Bangalore, IN

Abstract

Tax reform refers to introducing changes in existing tax base, rates, exemptions, rebates, concessions and administrative procedures.

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G. Thimmaiah

Abstract

In Vol. III, No. 2, (April-June, 1991), issue of the Journal of Indian School of Political Economy, Government’s policy towards the socially and educationally backward classes (SEBCs) had been traced from the early 1900s. In August 1990, the then Government had announced its policy towards the backward classes, based on the recommendations of the Second Backward Classes Commission (Mandal Commission). This announcement had led to widespread riots. The Government’s notifications had been challenged through writ petitions before the Supreme Court. The Supreme Court gave its judgement on the writ petitions in November, 1992. The present paper evaluates the Supreme Court’s judgement in this regard.

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