Trust in states’ fiscal responsibility vindicated7 min read . Updated: 15 Apr 2016, 02:39 AM IST
Contrary to fears of fiscal profligacy expressed by some following the FFC award, the states have maintained fiscal prudence
The Fourteenth Finance Commission (FFC) had stated explicitly in its report that its recommendations for federal fiscal arrangements were based on trust—an assumption that state governments would conduct themselves with a due sense of fiscal responsibility. The evidence now available indicates that the judgement has been largely vindicated.
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