Revenue sharing

This refers to ‘Is States’ share in tax kitty rising?’ (December 18). The declining share of the divisible tax pool allocated to States, despite the Centre’s rising overall revenue, requires urgent attention. This reduction in States’ share is largely due to the increasing reliance on cess and surcharges, which are not included in the divisible pool.

However, the Centre bears greater responsibility for managing fiscal priorities, including deploying tax revenues for infrastructure development and addressing States’ needs during natural calamities, both of which fall outside the scope of shared tax revenue. In the case of States, the proliferation of freebies by some States further strains their revenue resources, with such practices varying widely across States. The fiscal management of States also leaves much to be desired, as a significant portion of their revenue is directed towards non-productive revenue expenditures.

The Finance Commission has a critical role in addressing these anomalies.

Srinivasan Velamur

Chennai

Glamourising drugs

With reference to ‘I&B Ministry warns OTT players against glamourising drugs in content’ (December 18), most of the content on OTT platforms is replete with scenes depicting violence, use of narcotic drugs and other anti-social actions. Though the story may end with the message that such anti-social actions are inimical to the persons involved and the society, it is depicted in such an attractive manner it has the effect of deeply influencing and misguiding the youth and the end message is completely lost. If such anti-social behaviour is glamourised, even incorporating health warning messages will have little or no impact on the youthful minds. The government should consider any such transgressions a serious violation of law and take stringent and timely action.

Kosaraju Chandramouli

Hyderabad

Financial inclusion

Apropos ‘India’s digital divide: Bridging what, and for whom’ (December 18). Notwithstanding the substantial growth in digital payment and settlement systems across the economy, the digital divide is still prevalent among sections of people, who are unable to acquire devices and internet access. As such a lot of bank accounts opened under the financial inclusion programmes are just active to facilitate direct benefit transfer.

Why those bank accounts are not being fully utilised by the beneficiaries? Their meagre earnings are not permitting them is the simple answer. The flow of income to those beneficiaries needs to grow through the creation of more employment. Those sections of society due to poor literacy, besides low purchasing capacity to acquire the devices and pay the bill for internet facilities, are distancing themselves away from such discretionary spending. To them, it is a luxury.

VSK Pillai

Changanacherry, Kerala

Unemployment rate

Finance Minister Nirmala Sitharaman has said that according to the 2023-24 annual PLFS report, the all-India annual unemployment rate has been declining since the beginning of the survey in 2017-18. But it must be noted that it is productive employment that is significant for growth, and not mere jobs. The nation’s way of collecting data on unemployed or those living below the poverty line, one feels, is not accurate. Unless that is streamlined, any planning is a futile.

S Ramakrishnasayee

Chennai

Published on December 18, 2024