The nation’s 28 states, which account for about 60% of total govt expenditure on infrastructure & asset creation, are hamstrung by declining tax revenue & cost of fighting Covid.
The government's planned capital expenditure for the current fiscal has been increased to Rs 4.39 lakh crore, as against the Budgeted Rs 4.12 lakh crore.
Either Modi govt is expecting a revenue windfall that will be passed on to states, or states will be squeezed even further. My guess is it will be the latter.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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