ashokdeiva
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Every Indian citizen pays a percentage of his income as Tax to the central government beliving that the Government of India will increase the spending on public welfare in his or her locality to provide better roads, schools, etc.
Is this tax effectively utilized to the welfare of each of the state based on the contribution from each state or is the tax money from one state spent else where?
To my beliefe, the concept of Federal Tax is flawed in India, the Tax that we pay has to be split into two components, one a federal tax and the other a Local Tax. The Local tax should be directly deposited in the Tresury of the State Government so that the fund collected from one state is effectively used in the welfare/development of that state. The federal tax should be effectively used by the Central Government to run Central institutions like Army, Railways, etc.
This way we can be sure that the revenue generated on one state is used in development and welfare on that preticular state and is not spent elsewhere. This will also ensure that the efficiency of the local governance will be increased.
Is this tax effectively utilized to the welfare of each of the state based on the contribution from each state or is the tax money from one state spent else where?
To my beliefe, the concept of Federal Tax is flawed in India, the Tax that we pay has to be split into two components, one a federal tax and the other a Local Tax. The Local tax should be directly deposited in the Tresury of the State Government so that the fund collected from one state is effectively used in the welfare/development of that state. The federal tax should be effectively used by the Central Government to run Central institutions like Army, Railways, etc.
This way we can be sure that the revenue generated on one state is used in development and welfare on that preticular state and is not spent elsewhere. This will also ensure that the efficiency of the local governance will be increased.