What do you understand by Tax expenditure? Comment on its relevance? ( Economy)

Tax expenditure is the revenue foregone as a result of exemptions and concessions. Tax expenditure was introduced for the first time in 2006-07 union budget.  Tax expenditure is justified on following grounds: Act as an incentive for priority sector like infrastructure. It promotes balance regional growth It neutralise the disadvantage on account of location It … Read more

DMPQ: What is competitive federalism? Comment on its demerits and merits

Competitive federalism make states a competitive unit which provides a package of services and fiscal environment that attracts more resources. It is akin to market place system.   Benefits of CF: Promotes innovation Better services to citizens Place emphasis on continuous reforms Discipline state fiscally Best suited to deal with the pressures of globalisation Harmonisation … Read more