(a) whether the Union Government has given or proposed to give any
advice to the State Governments regarding their fiscal management;
(b) if so, the details thereof;
(c) whether the Union Government have held or proposed to hold any
dialogue with the State Governments on their fiscal problems;
(d) whether there will be any involvement of world agencies in the
proposed talks or formulation of suggestions on fiscal management by the
States; and
(e) if so, details in this respect?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
SHRI BALASAHEB VIKHE PATIL
(a) to (e) The State Governments are autonomous under the Constitution
and financial management of the States is primarily the responsibility
of the State Governments. Some of States have undertaken their own
medium term fiscal reform programme aimed at reduction in revenue
deficit through increased revenue mobilization, reduction in non plan
revenue expenditure, correction in prices & subsidy and disinvestment.
In 1999-2000, Government of India created a facility for extending
medium term assistance to those States who have entered into an
agreement with Government of India for initiating monitorable fiscal
reform programme. Some States, with the concurrence of Government of
India, have also availed of assistance from World Bank/Asian Development
Bank, for financial restructuring.