Allocation of Funds to States and Challenges in Transfers

In the run-up to the Union Budget, Nitish Kumar and Chandrababu Naidu, the Chief Ministers of Bihar and Andhra Pradesh, respectively, who are in a position to decide the political fate of the National Democratic Alliance (NDA) government at the Centre, have demanded special financial packages for their respective States. These packages could potentially increase the fiscal burden on the Centre and also on other States.

Should States get special packages outside Finance Commission allocations? Here we discuss the question 

Guests: Arun Kumar, former professor of economics at Jawaharlal Nehru University, New Delhi; Pinaki Chakraborty, fellow at the National Institute of Public Finance and Policy

Host: Prashanth Perumal

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