Central transfers to states, centrally sponsored schemes and governance
- 2009
- p.1-17.
The imbalance between revenues and the responsibility for expenditure for the States is not conducive to the emergence of accountable administration, as it has been seen that the more dependent a State is on central transfers, less are the chances of good governance in that State. Inadequacy of the revenue raising powers assigned to the states relative to their expenditure has been compensated by statutory provision for the transfer of fund, but mere gap filling transfers foster dependency and ultimately block the incentive to reform. - Reproduced.