ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Statewise Allocation of Central Plan Expenditure-Conceptual Problems

Expenditure Conceptual Problems K C Seal For study of statewise capital formation the 'incidence of expenditure' approach as recommended by the Regional Accounts Committee is justified. However, for assessing the equitable nature of the central plan expenditure, the incidence of expenditure approach cannot be recommended. And since the final 'incidence of benefits' arising from central plan investments accruing to different states cannot be estimated on a fairly reliable basis, some rough idea in this regard could be obtained, it is suggested by the author, by adopting the 'extent of subsequent use' approach for all central plan investments.

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