Government Purchases-Price Rigging by Cartels

over 50 per cent, will be incurred by the spates and union territories. The comparable proportion for 1976-77 was sightly below 48 per cent. What is noteworthy, however, is that while the size of the state plans will go up this year by Rs 1,259 crores, or by 33 per cent, from Rs 3,762 crores last year to Rs 5,021 crores, Central assistance for the state plans will go up from Rs 1,412 crores to Rs 1,812 crores, or by only about 28 per cent. The shitting of the responsibility for financing Plan expenditure to the states and union territories becomes even more clear if we consider the total net resources transferred by the Centre to the states and union territories which show a rise of only a little over 18 per cent in 1977-78 compared to the 33 per cent rise in the Plan expenditure which the states are expected to incur.