In the run-up to the 2024-25 State Budget, the State government is looking at “innovative measures” for mobilising the much-needed additional resources.
The Finance department has constituted a panel of experts to suggest methods to raise additional resources. The “raising of additional resources by various innovative measures is the only option left with the government for the ensuing Budget 2024-25” given the dwindling traditional revenue sources and the increase in revenue expenditure, a January 3 order constituting the panel observed.
The 14-member panel constituted by the Finance department includes C. P. Chandrasekhar, Professor Emeritus, Centre for Economic Studies and Planning, Jawaharlal Nehru University; 13th Finance Commission member Indira Rajaraman; Pinaki Chakraborty of the National Institute of Public Finance and Policy; and Ashima Goyal, Professor, Indira Gandhi Institute of Development Research, Mumbai; and several others.
The committee has been tasked with preparing a “comprehensive proposal” for raising additional resources for the State.
Social sectors
According to the Finance department, the increase in the spending on social sectors make it imperative for the State to tap new areas for resources.
“Consequent on the introduction of the Goods and Services Tax, the scope for raising additional resources for the State is dwindling whereas the revenue expenditure on account of higher importance given by the government on social sectors is increasing at a higher pace. In view of this, raising of additional resources by various innovative measures is the only option left with the government for the ensuing Vudget 2024-25,” the Finance department noted.
The State government has repeatedly blamed unfriendly Central policies of choking the State financially by depriving it of “rightful share” under various components and borrowing capacity. In December 2023, the Left government had filed a suit in the Supreme Court accusing the Centre of violating the spirit of fiscal federalism and unfairly limiting its borrowing capacity.
Other members of the high-level panel include the directors of the Centre for Development Studies and the Gulati Institute of Finance and Taxation.
