Central UDAY plan is behind the poor financial conditions of the states says RBI!
This has happened for the first time in more than 10 years when the state's fiscal deficit and gross domestic product ratio is 3 per cent crossing the level has reached 3.6! The reason for this is to provide loans and advances to power projects!
Due to the Central Government’s Ujjal Discom Assurance Plan, the financial condition of the states is adversely affecting. In its report, the Reserve Bank of India has attributed this scheme to the state’s poor financial position. Under this scheme, the government compensates the losses of the electricity companies due to the outstanding.
A report prepared by the name ‘State Finances: A Study of Budgets of 2016-17’ has said, “This has happened for the first time in more than 10 years, when the state’s fiscal deficit and gross domestic product ratio is 3 per cent crossing the level has reached 3.6. The reason for this is to provide loans and advances to power projects.
According to the data from September 2015, the state government took over 75 per cent of the outstanding power companies. For this, given big power projects and loan for them. Not only this, the RBI also questioned the loan waiver of the farmers and said that such steps would increase the financial burden in the medium term directly to the states. In the report of RBI, it said, “With this loan apology, the burden of farmers will suddenly decrease. This scheme is like paying money from taxpayers directly to the farmers. It has a direct effect on the state’s economic stability.
GST expects big benefits to be announced
However, in its report, the RBI has expressed hope of improving the financial health of the States from GST. Explain that the central government is engaged in efforts to implement the GST from July 1. “The successful implementation of the GST and the easy tax system will allow states to get additional revenue,” the report said.