Monetary disbursement to States to sustain recovery

Monetary disbursement to States to sustain recovery

Part of: Prelims and GS-II – Center-state relations and GS-III- Economy

Context The Centre will remit Rs. 95,082 crore to States next week, which is double the funds due to them from the shareable pool of taxes to enable them to deploy more money on capital spending.

Key takeaways 

• A meeting was held between the states and the Central government to figure out ways to sustain the economic recovery after the second COVID-19 wave and understand States’ concerns and plans
• The context of the meeting: After the second wave, India is seeing a robust growth. However, it’s also a time where it plans to sustain the growth, take it as close as possible to a double-digit growth for which the Centre and States have to work together.

Suggested methods to achieve growth

• States were urged to help India become the fastest growing economy in coming years.
• Methods suggested 
  • Facilitating investment attractiveness 
  • Expediting ease of doing business measures 
  • Undertaking power sector reforms.
  • Smoothen land acquisition
  • Create land banks for investors 
  • Monetisation of public assets,