Reduce subsidies, increase utility tariffs

New Delhi: The financial position of many states is not strong and the debt burden prevents them from spending on capital assets, no one is aware of. But it has now forced the central government to issue warnings and suggest material changes in state spending to prevent default.

TV Finance Secretary Somanathan, at a meeting with the heads of state secretaries in Dharamsala from June 15-17, made several suggestions to help states improve their finances. Prime Minister Narendra Modi also attended the meeting. Suggestions include “streamlining autonomous schemes and bodies and measures to reduce inefficient subsidies.”

Some of the possible measures suggested by Somanathan to reduce the state revenue deficit include the periodic increase in property taxes, the regular increase in the tax on various government services such as water, and the increase in property taxes. special tax on liquor from time to time.

The recommendations were part of a presentation. A copy of this is with ThePrint.

In 2012, the 15th Finance Commission also insisted on periodic increases in property tax rates in municipalities in line with inflation and growth.

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