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Piyush Goyal Criticizes States’ Demand for Funds Based on Tax Contributions
Union Minister Piyush Goyal has criticized certain states for requesting funds from the central government in proportion to their tax contributions, describing this approach as “petty thinking.” He emphasized that such demands overlook the broader principle of national unity and equitable development.
Goyal’s Perspective on Fiscal Federalism
Goyal argued that the central government’s role is to ensure balanced development across all regions, regardless of individual states’ tax contributions. He stated, “If every state starts demanding funds based on their tax contributions, it will lead to regional disparities and hinder the nation’s overall progress.”
Emphasis on Cooperative Federalism
The minister highlighted the importance of cooperative federalism, where resources are distributed based on need rather than contribution. He noted that the central government allocates funds to less-developed states to promote uniform growth and reduce regional inequalities.
Critique of States’ Fiscal Demands
Goyal’s remarks come in response to certain states advocating for a greater share of central funds, citing their substantial tax revenues. He cautioned that such demands could undermine the spirit of national integration and the objective of inclusive development.
Call for a Unified National Approach
The minister urged states to adopt a broader perspective, recognizing that the nation’s strength lies in its unity and the equitable development of all regions. He appealed to state leaders to collaborate with the central government in fostering growth that benefits the entire country, rather than focusing solely on their individual fiscal contributions.
Goyal’s comments underscore the ongoing debate over fiscal federalism in India, highlighting the tension between states’ desires for greater financial autonomy and the central government’s mandate to ensure balanced national development.
